Several giant coal mine conglomerates are to be created over the next three to five years to better compete on the international market and improve mine safety.

Large enterprises -- each with annual production of more than 100 million tons -- will be encouraged to take over smaller mines through mergers and acquisitions.

It is hoped these conglomerates will use resources more efficiently and allow for better regulation and standardization.

Called the State Council's Guidelines on Promoting the Healthy Development of the Coal Industry -- the new policy was released on the official website of the National Development and Reform Commission (NDRC).

The document lays down clear guidelines on safety:

• Mines that fail to reach safety or environmental standards will be closed.
• Mine owners should buy accident insurance for all miners.
• Miners should not be underground for more than eight hours daily of which a maximum of six hours can be spent at work.
• Miners should be given protective equipment before going underground.

In a related development, the first 200 safety supervisors -- all from North China's Shanxi Province -- received their letters of appointment in Beijing yesterday.

A total of 100,000 experienced coal miners will be chosen nationwide to oversee their work mates, under an initiative from the All-China Federation of Trade Unions and the State Administration of Coal Mine Safety.

Their main mission is to ensure safety, and tasks include stopping illegal operations; reporting hidden dangers; and evacuating miners when danger seems imminent.

"The present coal mine safety situation is very serious," said Zhang Junjiu, vice-chairman of the federation. "During the four months from last October to February, three catastrophic accidents happened with each killing more than 100 people."

Zhang said safety supervisors will be chosen from front-line coal miners with vast experience and a strong sense of responsibility. The 100,00 supervisors are expected to take up their posts in a year's time.

The government has also allocated more than 400 million yuan (US$36 million) to some major coal mines to help them upgrade safety facilities.

An NDRC official said that the subsidy will be spent on ventilation, monitoring and fire-extinguishing systems for the mines.

The central government plans to allocate 3 billion yuan (US$360 million) this year to help major State-owned coal mines upgrade safety.

Including the money provided by local governments and coal enterprises, total spending on mine safety will reach 15 billion yuan (US$1.8 billion) this year.

China is heavily reliant on coal for energy, making up 70 per cent of total consumption.

Last year, the country was the world's leading coal producer with an output of 1.956 billion tons, about 40 per cent of the global total.

The exact number of mines is unknown because there are many illegal operations. But the number of registered mines has been put at more than 20,000, while the known number of miners is 6 million to 8 million. Staff standards in private mines are much worse than in government mines.

(China Daily July 1, 2005)