OREANDA-NEWS. September 21, 2011. This announcement is made pursuant to Rule 13.09(1) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, reported the press-centre of China Coal Energy.  

At the request of China Coal Energy Company Limited (the “Company”) , trading in the H shares of the Company was suspended pending the release of this announcement. Application has been made to The Stock Exchange of Hong Kong Limited for the resumption of trading in the H shares of the Company.

On 16 September 2011, a flooding accident (the “Flooding Accident”) happened during the construction of technical improvement of the Yuanbao Bay Mine (an integrated mine to be technically improved) operated by China Coal Group Shanxi G-Ocean Energy Co., Ltd., a subsidiary of our controlling shareholder, China Coal Energy Group Limited (“China Coal Group”). When the Flooding Accident occurred, there were 21 miners working under the Yuanbao Bay Mine, and 10 of them were elevated to ground level safely and 11 of them were trapped underground. As at 12:00 p.m. on 19 September 2011 , 9 of trapped workers were dead and 2 of them are still trapped underground. The rescue work for the Flooding Accident is still undergoing, Subsequent to happening of the Flooding Accident, Shanxi Provincial Government requested underground mines owned by China Coal Group and 5 underground mines owned by the Company in Shanxi Province to suspend production for rectification.

The production of such mines can only be resumed once passing the safety inspection by the relevant local authorities of Shanxi Province.

In order to timely learn lessons from the Flooding Accident and to enhance its safety production, the Company will actively commence its own safety inspection to all of its underground mines in Shanxi Province through identifying potential hazards on flooding prevention, ventilation and safety and eliminating and controlling such hazards, and effectively take measures to ensure safe production.

The Company is of the opinion that, the suspension of production for safety inspection for underground mines within Shanxi Province is a short-term suspension of production, which will not have material impact on the production and the operation of the Company. The Company will also use its best endeavours to minimize the effects on its operation during the suspension of production for such underground mines through improving equipment utilization and working efficiencies. The Company will announce further updates accordingly.

Investors are advised to pay attention to investment risks and exercise in caution when dealing in the shares of the Company.