A total of 16 coal bosses in the province won the right to tap these coal
mines, reports said.
The transfer of exploitation rights through public auction not only allows
people to see who owns a mine, but also forces investors to map out long-term
development plans, said Guo Xuejun, owner of Shenjiao Coal Mine in Xiangning
County.
Guo's mine has invested more than 60 million yuan (US$7.5 million) in safety
measures, as well as on technological innovations.
Production capacity at Guo's colliery will increase to 450,000 tons from the
current 150,000 tons a year, said the boss.
"Since these resources are being purchased by colliery owners, they need to
rationalize production factors, and to reduce hidden dangers," said Wei Wanghai,
owner of Shiweigou Coal Mine in Liulin County.
Otherwise, our pits will be closed down or will be re-auctioned, said Wei.
"That would lead to tremendous losses and nobody wants to see that
happening."
According to a government plan relating to the development of Shanxi's coal
industry, the province will merge or close down every colliery whose annual
production is less than 90,000 tons by the end of this year.
The Ministry of Land and Resources, the National Development and Reform
Commission, and the Ministry of Finance have also decided to expand the auction
system to other mining areas in the 11th Five-Year Plan period (2006-10),
officials said.
But despite all these attempts to clean up the industry, some people still
remain sceptical about coal bosses.
One of the most widely-seen pieces of news last year concerned a rumour that
a number of coal bosses from Shanxi Province had bought 20 Hummer jeeps for cash
each costing about 1.5 million yuan (US$185,000) at a limousine show in Beijing.
No one knows whether the story is true, but the willingness of people to
believe the rumour shows what they think of coal mine owners.
"You can find nearly every type of luxury car in Taiyuan, including vehicles
made by Mercedes Benz and Ferrari," said Ma Wangying, a city taxi driver. Most
of them, he said, were owned by colliery bosses.