(Yicai Global) Oct. 12 -- A number of Chinese coal producers said the recent floods in China’s northern Shanxi province, which has forced at least 60 coal mines to halt production since Oct. 8, will have a limited impact on output of the fuel.

Shanghai-listed Wintime Energy started emergency safety production work in advance, with operations at coal mines and power companies going well for now, Shanghai Securities News reported yesterday, citing an executive at the Taiyuan-headquartered company.

An executive at Shanxi Coking Coal Group, China’s largest coke producer which is also based in Taiyuan, said operations and production at its mines are normal, according to the report. “To ensure safety, the mines suspended production and pulled out personnel due to the extreme weather,” he said.

Shanxi is the country’s largest coal-producing region with a total of 682 working mines as of August, according to the provincial energy bureau. Its mines produced 1.1 billion tons of coal last year, up 8.2 percent from 2019.

Shanxi experienced record rainfall in the past week, according to the provincial government. The downpours triggered floods that have claimed lives and affected more than 1.7 million people.

The flooding has not impacted Shanxi Coking Coal’s supply, its board secretary told Time Weekly yesterday. Some railways in the province stopped moving raw materials and goods, but normal operations have already resumed, according to the Shenzhen-listed firm’s local units.

Shares of Shanxi Coking Coal [SHE:000983] fell almost 6 percent today to CNY10.44 (USD1.62), bringing the decline in its stock to 13.5 percent from a closing price of CNY12.07 on Oct. 8. Wintime Energy [SHA:600157] added 1.5 percent to close at CNY2.02 today.

Despite coal producers saying the floods have had limited impact on output, analysts said heavy rainfall will affect the geological environment, with coal prices already up. The cost of thermal coal rose to CNY1,400 (USD217) a ton from CNY1,300 yesterday, while that of coking coal jumped to CNY3,300 a ton, according to financial data services provider iFind.

Shanxi has signed long-term coal supply contracts for the fourth quarter with 14 provinces amid nationwide short supply and high prices.

Editor: Futura Costaglione