China Holds Meeting on Coal Mine Safety After Accidents

(Bloomberg) -- Chinese authorities held an emergency meeting on Sunday after recent major accidents at coal mines, calling for “decisive measures” to control risks and curb such incidents.

Additional safety checks at mines in top producing provinces have crimped output at a time of strengthening demand, pushing prices higher. Thermal coal futures in Zhengzhou on Monday rose to an intraday record before slipping to settle down for the day.

It’s strictly forbidden for local governments and companies to demand higher output from mines than the quotas allow, the State Council’s Work Safety Committee and Ministry of Emergency Management said. There’s also no grace period for coal mines that are slated to close, it said.

Chongqing government officials were summoned by the committee after two fatal accidents at coal mines in the southwestern region. A total of 23 miners were killed in a mine in Chongqing Saturday, according to state television.

Thermal coal futures on the Zhengzhou Commodity Exchange slipped 0.4% to 693.6 yuan a ton after earlier rising to as high as 714 yuan, the highest intraday level on record for the most-active contract.

Newcastle coal for January delivery rose 2% Friday on ICE Futures Europe, capping off a 9.4% weekly gain. Newcastle coal has a slight quality premium to Zhengzhou.

Coking coal for January delivery on the Dalian Commodity Exchange gained 0.7% to 1,530.5 yuan a ton. Coke added 0.7% to 2,582.5 yuan a ton.

Australian coking coal for January fell 7.5% to $109.43 a ton on Friday on the Singapore Exchange.

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With assistance from Bloomberg