Shaanxi Coal Industry Co., Ltd., a listed company of Shaanxi Coal and Chemical Industry Group, produced 12.63 million tonnes of coal in November, falling 10.73% from the year prior, the company said in a statement on December 7.

November's output hit the lowest since February 2022. While the company did not elaborate on the production decline, the aftermath of recent accidents could be the core reason behind it.

Its flagship Zhangjiamao coal mine, located in Yulin city, reported one death caused by a roof collapse on November 1. This resulted in a downgrade in safety rating by the government, although it can be found nowhere whether the mine suspended operations because of this.

But one thing is for sure that the local safety watchdog has since then strengthened supervision and taken a range of measures to prevent more accidents from happening.

Zhangjiamao, covering 51.98 square kilometers with 865 million tonnes of geological reserves and 543 million tonnes of recoverable reserves, plays a significant role in local supply. The coal mine has been built at a large and modern demonstration, with approved capacity of 11 million tonnes per annum, deemed with low natural risks of gas blast and rock burst.

Market traders noted the mine had been absent from online auctions since November 1, and finally came back on December 6. This suggested the mine's operations could be shut for a month.

This accident underscored safety problems that Zhangjiamao has long ignored. Since the beginning of this year, it had been punished four times for safety issues and environmental protection issues once, with a total fine amounting to about 6.54 million yuan, needless to say nearly one million yuan for illegal overproduction.

(Writing by yan.sun  Editing by Alex Guo)
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