A major coal-producing city in Shaanxi province is set to resume the operation of several mines, which were suspended in January after a serious mine collapse that killed 21.
On Monday, Yulin city released a list of coal mining companies that will soon resume operation. The total capacity of the mines is around 130 million tons per year. The city government had previously announced in February that it would resume coal production of around 200 million tons per year worth of mines. It is not clear if all mines affected by the accident will be allowed to re-open soon.
Some mines in Yulin have lowered the price of coal by around 20 ($2.98)--40 yuan per ton, as they expect coal supply to increase.
After the January accident, the city halted an estimated 150 million tons of coal production due to safety concerns, pushing the price of coal sold at local mines up by as much as 150 yuan per ton.
Yulin city produced 456 million tons of coal in 2018, over 12% of China’s total coal production that year.
Industry watchers believe the city’s recent decision will affect related coal futures, with the prices of some futures already declining.