China safety crackdown boosts coal imports

Australian coal companies say they areexporting to China for the first time as Beijing's latest push for minesafety has cut domestic output.

A new crackdown in Shanxi province has cut production sharply thisyear, creating the shortage, The Sydney Daily Herald said Sunday.

The shortage is expected to continue, the newspaper said, becauseChinese officials appear serious about improving safety and are keepingdangerous mines closed for extended periods.

Around 3,200 miners were killed toiling in Chinese coal mines last year, The Herald said.

That has led to major increases in exports to China of both coking coal and thermal coal, used for power generation.

The bonanza for Australian exporters may not last, however. Industryexecutives say they are seeing increased demand for coal fromthroughout northeast Asia that is soaking up surplus tonnage.