The company said in a statement to the Hong Kong Stock Exchange the mines passed a safety inspection by local authorities in Shanxi province. Three other sites are starting checks.
Xinhua News Agency reported on September 17 that production at the five underground mines was suspended after flooding at a pit run by China National Coal Group Corp the nation second largest coal producer and parent of the listed company killed 10 people.
China Coal said the provincial government ordered a halt pending rectification to underground mines owned by the parent and five underground mines in Shanxi held by the listed unit after the September 16 accident.
China Coal shares have dropped 29% since the accident, compared with a 10% slide in the Hang Seng Index. The suspensions, ordered as power plants prepared to start replenishing coal stockpiles for winter demand for electricity won’t have a material impact on output or the company operations.
There had been 512 coal mine accidents in China as of June, 21% fewer than in the same period in 2010. Shanxi produced 740 million tons of coal last year trailing only the 782 million tons mined by Inner Mongolia, China top producing province.
(Sourced from Bloomberg)
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