China’s coal mine safety problem is back at the worst time

Authorities in the coal hub of Yulin this week ordered a mine to be shut after discovering its license had expired and finding safety hazards on site, according to a notice from the city’s energy bureau posted on WeChat by industry publication Thermal Coal Today. Yulin is the center of mining activity in Shaanxi province, China’s third-biggest producing region.

The shutdown follows an escalation of deadly accidents to start this year after the government pressured mines to boost output to stave off an energy shortage. Twenty-nine miners died in accidents in January and February, nearly double the total from the same period last year, China’s National Mine Safety Administration said in a report this week. Fourteen died in one accident alone after a roof collapse in Guizhou province.

Mine safety has been in the spotlight recently as the Communist Party, which celebrated its centenary last year, burnishes its credentials as the protector of blue-collar workers. A crackdown on unsafe mining practices and harsher penalties last year were in part blamed for a reduction in mine output that led to shortages that caused widespread power curtailments in September and October.

If authorities launch more safety inspections, it could slow domestic production growth at the same time imports have fallen as global prices hit records amid supply scarcity. Buyers are avoiding cargoes from Russia, the third-biggest exporter, after its invasion of Ukraine, and top shipper Indonesia may have to curtail foreign shipments again this year in order to secure domestic supplies.

All that will challenge Beijing’s focus on energy security, reiterated during the opening of its National Party Congress last weekend, as leaders seek to avoid any shortages and buffer the economy from global commodity fluctuations to keep inflation in check. Leaders may have to choose what’s their top priority: safety or security.