Shanxi Coking Coal halts three mines amid accidents, licence expiry

Shanxi Coking Coal Energy Group has suspended operations at three mines following a fresh accident and licence expiries, adding pressure on the company's output plans for 2026.

The company announced on August 6 that its Xiqu mine halted production after a safety accident on August 5 that killed one worker. The mine has an approved annual capacity of 2.7 million tonnes, accounting for 5.67% of the company's total certified capacity.

The suspension came less than a week after Xiqu resumed production on July 30, following the successful renewal of its mining and safety production licences. The company had earlier halted Xiqu, Zhenchengdi and Malan mines on July 28 due to expired licences, affecting a combined certified annual capacity of 8.2 million tonnes, or 17.23% of total capacity.

Malan mine, with 6.3 million tonnes of annual capacity, also resumed production on July 30. However, Ximing mine was subsequently suspended for the same licence issue, leaving Ximing and Zhenchengdi offline with a combined capacity of 5.5 million tonnes, or 11.55% of the total.

As of now, three mines — Ximing, Zhenchengdi and Xiqu — remain suspended, with combined capacity of 8.2 million tonnes, representing 17.22% of the company's total certified capacity.

Shanxi Coking Coal, the listed arm of Shanxi Coking Coal Group, China's largest coking coal producer, operates 17 mines, of which 16 are in production and one under construction. The company held coal reserves of 6.46 billion tonnes as of end-2025.

The company produced 46.87 million tonnes of raw coal in 2025, down 0.74% year on year. It has set a 2026 production target of 46.15 million tonnes, 1.54% below 2025 output.

All of the company's mines are located in Shanxi province, concentrated in the Jinzhong base and the core coal-producing areas of Linfen and Luliang — regions where mine suspensions have been relatively concentrated following the Changzhi accident.

Given the notable decline in Shanxi's raw coal output in the first half due to the Changzhi accident, coupled with ongoing strict safety inspections across the province, Shanxi Coking Coal's first-half production is likely to fall short of its plan. The recent spate of suspensions, under the province's new 17-point coal safety regulations, makes achieving this year's production target increasingly challenging.

Following the Xiqu accident, the company held a video conference on August 6 on production safety, urging all units to learn from recent accidents and strengthen risk prevention.

For mines suspended due to licence expiries, the company said it is actively coordinating with relevant administrative authorities to expedite the renewal process and will resume production immediately upon completion. For Xiqu, the company pledged to enhance safety risk control, conduct special inspections and reinforce safety responsibilities.

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