Article 37 People's governments at and above county level and their department of coal administration and other relevant departments shall strengthen the supervision¹ and control over the work of safety in production of coal mines.

　　Article 38 The system of mining bureau director's and mine director's responsibility shall be adopted for the control of safety in production of coal mining enterprises.

　　Article 39 Mining bureau directors， mine directors and other chief persons-in-charge of the coal mining enterprises must abide² by laws and regulations concerning safety in mines and safety rules and regulations of coal industry， strengthen the control over the work of safety in production of coal mines， implement³ the responsibility system for safety in production and adopt effective measures to prevent the occurrence of casualties and other safety accidents in production.

　　Article 40 Coal mining enterprises shall give their staff and workers counseling and training on safety in production； those having not received such counseling or training may not go to the operation.

　　Staff and workers of coal mining enterprises shall abide by laws and regulations concerning safety in production， rules and regulations of coal industry and of the enterprise.

　　Article 41 During underground operation in coal mines， in the case of emergencies which endanger the lives and safety of the workers and cannot be removed， the person in charge or the safety manager at the operation site shall promptly⁴ organize the workers to evacuate⁵ the scene of danger and give report to relevant person in charge without delay.

　　Article 42 The labor⁶ union of a coal mining enterprise shall， when discovering that the management of the enterprise gives a command contrary to the established rules and compels workers to operate under unsafe conditions， or finding in the course of production major hidden dangers of accidents which may endanger lives and safety of the workers， have the right to put forward proposals for a solution， and the management of the coal mining enterprise must make a decision without delay. If the management of the enterprise refuses to take any action， the labor union shall have the right to give criticism， inform the relevant authorities or file charges.

　　Article 43 Coal mining enterprises must provide their staff and workers with labor protection articles necessary for the guarantee of safety in production.

　　Article 44 Coal mining enterprises must effect accident insurance and pay the insurance expenses for the staff and workers who conduct under pit operation.

　　Article 45 Equipment， materials， fire products and safety instruments used by coal mining enterprises must meet the national or industrial standards.

　　Chapter IV Coal Management

　　Article 46 Coal mining enterprises having obtained a coal production license⁷ in accordance with the law shall been titled to sell the coal produced by the enterprise itself.

　　Article 47 For establishing a coal managing enterprise， the following requirements must be satisfied：

　　（1） have a registered capital compatible with the management scale；

　　（2） have fixed⁸ premises⁹；

　　（3） have necessary installations and sites for coal storing；

　　（4） have up-to-standard metro¹⁰ logical and quality inspection¹¹ equipment；

　　（5） conform to the rational distribution of coal managing enterprises demanded by the state； and

　　（6） other requirements specified¹² by laws or regulations.

　　Article 48 For establishing a coal managing enterprise， an application must be submitted to a department designated by the State Council or by the people's government of the province， autonomous¹³ region or municipality directly under the central government； the latter shall conduct a qualification examination in accordance with the requirements specified in Article 47 of this Law and the scope of authorities at different levels stipulated¹⁴ by the State Council； those satisfying the requirements shall be given an approval. Only after having applied¹⁵ for and obtained a business license from the administrative¹⁶ department for industry and commerce by presenting the approval document may the applicant¹⁷ engage in coal management.

　　Article 49 In coal managing activities， coal managing enterprises shall abide by the provisions of relevant laws and regulations， improve service quality and ensure supplying. All illegal managing activities shall be forbidden.

　　Article 50 Intermediate links shall be reduced and irrational¹⁸ intermediate links shall be liquidated¹⁹ in coal management. It is advocated that coal mining enterprises with suitable conditions conduct direct sales of coal.

　　Coal users and coal managing enterprises in coal sales territories shall be entitled to purchase coal directly from coal mining enterprises. In coal production territories， coal sales and transport service agencies may be organized to handle selling and transporting business for small and medium sized coal mines.

　　No administrative departments may violate the state's provisions and establish intermediate links in the course of coal supply and charge extra expenses.

　　Article 51 Stations， ports and other transportation enterprises engaging in coal transportation may not involve themselves in coal management and seek for illicit²⁰ earnings²¹ by taking advantage of the transportation power they possess.

　　Article 52 The administrative department for commodity prices under the State Council shall， in conjunction with the department of coal administration and other relevant departments under the State Council， conduct supervision and control over the market prices of coal.

　　Article 53 The quality of coal supplied to users by coal mining enterprises and coal managing enterprises shall meet the national or industrial standards with the called grade and demanded price compatible with the actual quality. Where the user has special quality requirements， the two parties of supply and demand shall include the requirements in the contract for purchase and sale of coal.

　　Coal mining enterprises and coal managing enterprises may not adulterate coal or mix up coal of different grades or pass inferior coal off as quality one.

　　Article 54 Coal mining enterprises and coal managing enterprises shall give compensation in accordance with the law if the quality of coal supplied to users by them fails to meet the national or industrial standards or fails to conform to stipulations in the contract， or the called grade or demanded price is not compatible with the actual quality and that has caused damages to users.

　　Article 55 Coal mining enterprises， coal managing enterprises， transportation enterprises and coal users shall supply， transport and accept and unload coal in accordance with laws， relevant provisions of the State Council or stipulations in contracts.

　　Transportation enterprises shall separately load and stack coal they have accepted for carriage according to different quality of the coal.

　　Article 56 The import and export of coal shall be unifiedly managed in accordance with provisions of the State Council.

　　Large-scale coal mining enterprises with suitable conditions may engage in coal export after licensed²² by the administrative department for foreign trade and economic cooperation under the State Council in accordance with the law.

　　Article 57 Measures for administration of coal management shall be formulated²³ by the State Council in accordance with this Law.

　　Chapter V Protection of Coal Mining Area

　　Article 58 No unit or individual may endanger power， communication， water sources， transportation or other production facilities in coal mining areas.

　　All units and individuals are forbidden to disrupt order in production and other work of coal mining areas.

　　Article 59 Any unit and individual shall have the right to inform the relevant authorities of or file charges against acts of stealing or destroying installations or equipment of coal mining areas or other acts endangering the safety in coal mining areas.

　　Article 60 Without permission of the coal mining enterprise， no unit or individual may make planting， breeding or earth-gathering or construct any buildings or structures within the validity period of the right to use land obtained by the coal mining enterprise in accordance with the law on the land concerned.

　　Article 61 Without permission of the coal mining enterprise， no unit or individual may occupy the rail line， road， waterway， wharf²⁴， power lines or water-supply pipes for special use of the enterprise.

　　Article 62 When there is a need to conduct operation in the mining area of a coal mine and the operation may endanger the safety in the coal mine， only after having obtained permission from the coal mining enterprise and the approval of the department of coal administration and taken proper safety measures may relevant unit or individual start the operation.

　　When there is a need to conduct public engineering or other engineering within a coal mining area， only after having consulted and reached agreement with the coal mining enterprise may the relevant unit start the operation.

　　Chapter VI Supervision and Inspection

　　Article 63 The department of coal administration and other relevant departments shall， in accordance with the law， conduct supervision and inspection on coal mining enterprises and coal managing enterprises with respect to their implementing²⁵ of coal laws and regulations.

　　Article 64 Supervisors²⁶ and inspectors²⁷ from the department of coal administration and other relevant departments shall familiarize themselves with coal laws and regulations， grasp the specialized²⁸ technology in the field of coal， conduct themselves fairly and honestly and enforce the law justly.

　　Article 65 When performing supervision and inspection， supervisors and inspectors from the department of coal administration and other relevant departments shall have the power to inquire the situation about the implementation²⁹ of coal laws and regulations of coal mining enterprises， coal managing enterprises and users， consult relevant data and enter the field to make on-the-spot inspection.

　　Coal mining enterprises， coal managing enterprises and users shall provide facilities to the supervisors and inspectors from the department of coal administration and other relevant departments in performing their duties of supervision and inspection.

　　Article 66 Supervisors and inspectors from the department of coal administration and other relevant departments shall have the power to order the coal mining enterprise or coal managing enterprise to correct their acts violating coal laws or regulations.

　　Supervisors and inspectors from the department of coal administration and other relevant departments shall produce their certifications when performing supervision and inspection.

　　Chapter VII Legal Responsibility

　　Article 67 If anyone violates the provisions of Article 22 of this Law and engages in coal production without a coal production license， the department of coal administration shall order it to halt the production， confiscate³⁰ the illegal earnings and may impose a fine ranging from one to five times the illegal earnings； if the offender³¹ refuses to halt the production， the local people's government at or above the county level shall make an order to cutoff its power supply.

　　Article 68 If anyone violates the provisions of Article 25 of this Law and transfers or hires out its coal production license， the department of coal administration shall revoke³² its coal production license， confiscate the illegal earnings and impose a fine ranging from one to five times the illegal earnings.

　　Article 69 If anyone violates the provisions of Article 29 of this Law and mines coal resources without reaching the coal resources recovery rate stipulated by the department of coal administration under the State Council， the department of coal administration shall order the offender to make corrections within a specified time limit； those failing to reach the specified recovery rate within the specified time limit shall be revoked³³ of their coal production license.

　　Article 70 If anyone violates the provisions of Article 31 of this Law and mines the protective coal columns or adopts dangerous methods which may endanger the safety in production of the neighboring coal mine， the department of labor administration shall， in conduction with the department of coal administration， order the offender to halt the operation； the department of coal administration shall confiscate the illegal earnings， impose a fine ranging from one to five times the illegal earnings and revoke the coal production license； if a crime is constituted， the judicial³⁴ organ shall make an investigation³⁵ for criminal responsibility in accordance with the law； if any losses have been caused， the offender shall be responsible for compensation in accordance with the law.

　　Article 71 If anyone violates the provisions of Article 48 of this Law and engages in coal managing activities without examination and approval， the department responsible for the examination and approval shall order the offender to halt the business， confiscate the illegal earnings and may impose a fine ranging from one to five times the illegal earnings.

　　Article 72 If anyone violates the provisions of Article 53 of this Law and adulterates coal or mixes up coal of different grades or passes inferior coal as quality one， it shall be ordered to halt the sales with the illegal earnings confiscated³⁶ and a fine ranging from one to five times the illegal earnings imposed and it may be revoked of its coal production license or disqualified from coal management； if a crime is constituted， the judicial organ shall make an investigation for criminal responsibility in accordance with the law.

　　Article 73 If anyone violates the provisions of Article 60 of this Law and， without the permission of the coal mining enterprise， constructs buildings or structures within the validity period of the right to use land obtained by the coal mining enterprise in accordance with the law on the land concerned， the local people's government shall mobilize the offender to demolish³⁷ the building or structure； in the case of refusal to demolish it， the offender shall be ordered to do so.

　　Article 74 If anyone violates the provisions of Article 61 of this Law and， without permission of the coal mining enterprise， occupies rail line， road， waterway， wharf， power lines or water-supply pipes for special use of the coal mining enterprise， the local people's government at or above the county level shall order it to make corrections within a specified time limit； those failing to make corrections within the specified time limit shall be compelled to remove； if any losses have been caused， the offender shall be responsible for compensation in accordance with the law.

　　Article 75 If anyone violates the provisions of Article 62 of this Law and， without obtaining approval or taking proper safety measures， conducts operation in the mining area of a coal mine that may endanger the safety in the coal mine， the department of coal administration shall order the offender to halt the operation and impose a fine up to 50，000 yuan； if any losses have been caused， the offender shall be responsible for compensation in accordance with the law.

　　Article 76 Anyone committing any of the following acts shall be punished by the public security organ in accordance with relevant provisions of the regulations on administrative penalties for public security or， if a crime is constituted， be investigated for criminal responsibility by the judicial organ：

　　（1） impede³⁸ the construction of a coal mine and make it impossible for the construction to go on smoothly³⁹；

　　（2） intentionally⁴⁰ damage the power， communication， water sources， transportation or other production facilities in coal mining areas；

　　（3） disturb the order in a coal mining area and make it impossible for the production or other work to go on smoothly； or

　　（4） refuse or obstruct⁴¹ supervisors or inspectors who are carrying out their functions according to law.

　　Article 77 Those issuing a coal production license to a coal mining enterprise that fails to satisfy the requirements specified by this Law or granting approval to an application for establishing a coal managing enterprise without satisfying the requirements specified by this Law shall be ordered to make corrections by the competent authorities of higher level or by the supervisory organ with a disciplinary sanction given to the person in charge directly responsible and other person directly responsible； if a crime is constituted， the judicial organ shall make an investigation for criminal responsibility in accordance with the law.

　　Article 78 Any executive of a coal mining enterprise who gives a command contrary to the established rules and compels workers to operate under unsafe conditions and thereby⁴² causes accidents involving serious casualties shall be investigated for criminal responsibility by applying mutatis mutandis the provisions of Article 114 of the Criminal Law.

　　Article 79 Any executive of a coal mining enterprise who fails to take measures to remove the hidden dangers of accidents and thereby causes accidents involving serious casualties shall be investigated for criminal responsibility by applying mutatis mutandis the provisions of Article 187 of the Criminal Law.

　　Article 80 Any functionary⁴³ of the department of coal administration or other relevant departments who neglects his duty， practices favoritism and irregularities or abuses his power shall be given a disciplinary sanction； if the action statute⁴⁴ a crime， the offender shall be investigated for criminal responsibility by the judicial organ in accordance with the law.

　　Chapter VIII Supplementary⁴⁵ Provisions

　　Article 81 This Law shall enter into force on December 1， 1996.

　　Appendix： Relevant Provisions of the Criminal Law

　　Article 114 If any staff member or worker of a factory， mine， forestry⁴⁶ center， construction enterprise or other enterprise or institution disobeys management and violates the rules and regulations or forces workers to work in a hazardous⁴⁷ way in violation⁴⁸ of the rules and thereby causes a serious accident involving injury or death and serious consequences， he shall be sentenced to fixed-term imprisonment⁴⁹ of not more than three years or criminal detention⁵⁰； if the circumstances are especially flagrant， he shall be sentenced to fixed-term imprisonment of not less than three years and not more than seven years.

　　Article 187 Any state functionary who， because of neglect of duty， causes public property or the interests of the state and the people to suffer heavy losses shall be sentenced to fix-term imprisonment of not more than five years or criminal detention.

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