China to increase mine safety
A spate of mining accidents that claimed more than 300 lives in
China over the past two months has Beijing understandably concerned about the safety of the country's mines.
The government, which currently runs a $6 billion deficit when it comes to investing in mining safety, has requested that mining companies pay voluntary safety fees amounting to RMB 15 ($1.81) per ton of coal produced. A study found that mines with good safety records allocated RMB 15 per ton of coal to a safety fund.
Last year, Beijing began requiring companies to invest between RMB 2-10 ($.24-1.21) per ton of coal produced. While the government hopes that all mining companies will step forward and contribute RMB 15 per ton of coal produced, there are concerns that such a request may cause yet another rise in domestic coal prices. Local prices for coal in
China have increased 50% year on year.