On 22 May, a devastating gas explosion at the Liushenyu coal mine in Shanxi province left at least 82 people dead. China’s most lethal coal mine accident since 2009 was the result of a company illegally exceeding production limits, Caixin suggests.
An official investigation is ongoing, but in the immediate aftermath authorities have launched province-wide safety inspections. As of 25 May, operations have been suspended at 109 coal mines, Caixin adds.
Industry experts expect the move to cause short-term disruptions to national coal supply. Shanxi is the nation’s top coal-producing region, accounting for 27% of raw coal output last year. At the same time, the province is accelerating its clean energy transition. In 2025, its installed capacity of “new energy and clean energy” exceeded that of coal power for the first time, Guangming Daily reports.
Millions of people in Shanxi rely on the coal industry for their livelihoods, and estimates suggest that 90% of these jobs could disappear by 2060, reports Jiemian News. Finding workers new jobs is clearly a critical issue when it comes to coal mine closure.
“Just transition” has been foregrounded in Shanxi’s phasing out of coal. In 2024, the local government included the term in its annual work report for the first time, meaning to “properly address related social issues, including the negative impacts on employment and the livelihoods of vulnerable groups, so as to ensure fairness and equity”.
The Liushenyu disaster occurs amid a period of contradiction for China’s energy sector. Last year, coal-fired power generation and power sector CO2 emissions fell for the first time in a decade, while raw coal output reached a record high of 4.85 billion tonnes in 2025.
According to Global Energy Monitor, China’s new coal power proposals exceeded 50 gigawatts in the first quarter of 2026, an expansion seemingly at odds with the government’s policy calling for the “reasonable control of the installed capacity and power generation of coal-fired power plants”.
One study shows that local governments have been the “behind-the-scenes” operators of coal overcapacity due to the demand for GDP growth and local interests. The surge in coal production and new proposals highlight the tension between China’s decarbonisation goals – aiming for a carbon peak before 2030 – and the immediate demand for local economic development, energy security, and social security.
Read Dialogue Earth’s recent analysis on China’s historic drop in power-sector emissions.