Collusion between corrupt officials and coal bosses is also blamed for the
huge number of deaths, and the loss of State assets.
"Even if a boss earns 100 yuan (US$12.5) per ton, he has to use 40 yuan
(US$5) to pay off local officials, who have the right to decide the fate of his
colliery," Liu Hongsheng, a colliery owner in a small town in northwestern
Shanxi, told reporters.
Xue Yulong, another coal boss, said his coal mine had to pay about 400,000
yuan (US$50,000) to purchase a power distribution unit from a local power supply
bureau, although the market price of the machinery was only 10 per cent of that
figure.
The central government announced only last week that more than 5,000
officials had admitted to illegally investing some 700 million yuan (US$87.5
million) in coal mines.
Some coal bosses said they have decided to shift their investment to other
industries, while others have begun to donate money to local residents and
public welfare projects with the aim of improving their tarnished images.
Qin Peng, the owner of Nanping Coal Mine in Yangcheng County in Shanxi, plans
to invest 500 million yuan (US$62.5 million) in a local scenic spot to help
local residents earn money through tourism.
With an annual production of 150,000 tons, Qin's coal mine is the only
private colliery in Jincheng that has completely updated its plant.
It has spent money updating its power supply, transport network, and
ventilation and water drainage systems, all costing 60 million yuan (US$5.25
million).
The coal mine now has a production capacity of more than 1 million tons a
year, Qin said.
In order to protect the interest of State assets in the coal mining industry,
Shanxi provincial government has introduced public auctions to sell off coal
resources, officials said.
Proved reserves of coal in Shanxi amount to 270 billion tons, 96 billion of
which have already been transferred to collieries, statistics show.
And previously, coal mine owners had to pay only low levels of taxation,
reports said.
The first coal auction was held in June, with 273.4 million yuan (US$33.7
million) paid for the exploitation rights to seven coal mines bought from the
Shanxi Provincial Land and Resources Department.
