Financial Services Association, April 12 (Reporter Liang Xiangcai) After today's market, Zhengzhou Coal & Electricity (600121.SH) announced that the holding subsidiary Xinzheng Coal and Power received a notice from the higher coal management department that the mine stopped production on April 4, 2024 due to a major hidden hazard. Production will resume after the rectification of hidden hazards is completed and the procedures for resuming work and production are carried out.

“This time, safety hazards were discovered in a self-inspection, and production can only be resumed after passing the inspection. The company will promptly announce the specific time for resuming production.” The person in charge of coal and electricity in Zhengzhou told the Financial Federation reporter this.

It should be noted that Xinzheng Coal and Electricity is the main coal mine for coal power in Zhengzhou. According to the announcement, out of the company's six major coal mines in 2023, Xinzheng Coal and Electricity's coal reserves will be 156.77 million tons, accounting for more than 60%. In terms of performance, Xinzheng Coal and Electricity has an approved annual production capacity of 3 million tons, produced 2.69 million tons of coal in 2023, and revenue of 1,563 billion yuan, accounting for 36% of the company's total revenue in 2023.

Zhengzhou coal and electricity is increasing investment in safety costs. In 2023, the company's safety expenses ranked second among all costs, at 452 million yuan, an increase of 11.51% over the previous year, accounting for 17.12% of the total cost.

A relevant person in charge of the company told the Financial Federation reporter that this year they will focus on increasing safe and intelligent construction, “with more machines and fewer people.”

A Financial Services Association reporter noticed that there have been several coal mine accidents in Zhengzhou in the past two years. In June 2022, Xinzheng Coal and Electricity was discontinued due to a one-person crash and death. Production was discontinued for a total of 35 days, with a shutdown cost of about 33 million yuan. In February of the same year, the company branch concluded that the coal mine stopped production and rectification due to a one-person fatal accident. Production was stopped for a total of 46 days, with a shutdown cost of about 37 million yuan. In August 2023, a one-person fatal accident occurred on the Xinzheng coal and electricity comprehensive mining site and production was stopped. Production was discontinued for a total of 32 days, with a shutdown cost of about 40 million yuan.

People related to coal and electricity in Zhengzhou said that unlike the company's previous shutdown of production related coal mines, the current shutdown was voluntarily reported to the relevant competent authorities for confirmation after self-inspection discovered safety hazards.

An industry insider told the Financial Federation reporter that since the Pingmei Co., Ltd. (601666.SH) mining accident occurred at the beginning of this year, all coal companies have paid great attention to mine production safety, and should do their best to provide early warning.

On January 12 of this year, a coal and gas accident occurred during the production process at Mine 12, a branch of Pingmei Co., Ltd., which killed 16 people.