Chinese coal industry regulators have shut several coal mines after concern over industrial accidents as the fuel, which provides half of the country’s power, becomes increasingly expensive, reports Bloomberg
According to Bloomberg, the local government in Hubei announced, on Saturday, that the province will see no coal mining operations between June 15 and July 5 following a gas pipeline explosion that killed 25 people on June 13. This comes after Anyuan Coal Industry Group halted five mines in Jiangxi province from June 21 to July 4.
The mine shutdowns follow a spate of deadly accidents and coincide with nationwide celebrations of the 100th anniversary of the founding of the Chinese Communist Party, which begin July 1. The halts are suppressing domestic output even as strong industrial activity and high temperatures boost demand.
“This year’s peak summer season may be the most difficult year in history to maintain supply,” Bloomberg quoted Fengkuang Coal Logistics as saying in a research note on Monday. “Coal prices will remain at a high level.”