REGULATIONS FOR THE IMPLEMENTATION OF THE SAFETY IN MINES

    Article 1  These Regulations are formulated in accordance with the Law of
the People’s Republic of China on Safety in Mines (hereinafter referred to as
the Mining Safety Law).

    Article 2  Terms used in the Mining Safety Law and in these Regulations
have meanings as the following:

    “Mines” refers to the site where mining operations of mineral resources
are performed within a mining area assigned with legal approval, and its
auxiliary facilities.

    “Mining operations of mineral resources” refers to those operations
related to exploration of mineral resources, construction of mines,
production, close-down of pits and other operations, within the mining area
assigned with legal approval.

    Article 3  The state shall adopt policies and measures to support
education on mining safety, to encourage research and application of safety
mining techniques, safety management, safety devices and apparatuses, and to
promote progress in science and technology on safety mining operations.

    Article 4  People’s governments at all levels, government departments or
enterprises and institutions shall, in accordance with relevant state
provisions, give awards to units and persons who fall into any of the
following categories:

    (1) having been devoted and made remarkable contributions to his duty in
safety management and safety monitoring;

    (2) having done meritorious service in preventing accidents or in rescuing
operations in mines;

    (3) having made marked achievements in popularization of safety techniques
and in improving safety devices used in mines;

    (4) having presented rationalization proposals on safety production in
mines, bringing in remarkable results; or

    Article 5  Geological exploration reports for designing mines shall
include technical data as follows:

    (1) nature and scope of relatively large faults, zones of fracture,
landslide and mud-rock flows;

    (2) nature, thickness, shape of water-bearing beds (including Karst caves)
and water-resisting layers, hydraulic relation between the water-bearing beds,
between surface waters and underground waters, phreatic water level, quality,
quantity and flowing directions of underground waters, surface water system
and its hydrophobic capacity relating to hydro-engineering, as well as records
of local annual precipitation and the highest level of flood;

    (3) locations, excavating depth and water-logged situation of original
small kilns and old kilns within the mining area under design;

    (4) situation about methane and carbondioxide accumulated, possibility of
self-ignition of ores, and possibility of explosion caused by mine dust;

    (5) components, contents and variation of ores harmful to human health,
data about natural radioactive background within the exploring area backdated
for at least one year;

    (6) abnormality of ground temperature, heat-conducting rate of rock,
gradient of ground temperature, source of hot-water, water-temperature,
water-pressure, water-quantity within hot-water mining areas and extent of
heat-hazards as demarcated;

    (7) source and quality of water for industrial and daily uses;

    (8) data about confining drilled holes; and

    (9) other data necessary for designing mines;

    Article 6  In preparing feasibility study reports and general design for
construction of mines, it is necessary to access safety condition for mining
operations.

    In primary design of construction projects, a chapter exclusive for safety
is required. Requirements of this chapter shall be decided by the labor
administrative department of the State Council.

    Article 7  According to article 8 of the Mining Safety Law, when
construction units submit to the authorities in charge of mining enterprises
design documents about safety devices used in mine construction projects, the
same documents shall be submitted to the administrative department in charge
of labor. Without the latter’s conclusion after examination, the authorities
in charge of mining enterprises may not give approval to the documents.

    When revisions must be made to the designs of safety devices used in the
mine construction projects that have been approved, the original labor
administrative department which involved in examining the designs shall be
approached for opinions.

    Article 8  Operations for mine construction projects shall be conducted
according to design documents already approved and its quality shall be
guaranteed. Upon completion of the project, check and acceptance test shall be
applied for according to relevant state provisions.

    The construction unit shall, 60 days before check and acceptance test
begins, present a comprehensive report about construction of safety devices
and about situation of the completed mine construction project, to the
authorities in charge of mining enterprises and the administrative department
in charge of labor.

    Article 9  The authorities in charge of mining enterprises and the
administrative department in charge of labor shall, within 30 days after
receiving the comprehensive report submitted by the construction unit, carry
out check on the safety devices installed in the mine construction project; if
inconformity to safety rules set for mines, and technical standards of the
trade, is found, check and acceptance procedure cannot be performed, and the
project cannot be put in operation or use.

    Article 10  Mines shall be equipped with safety devices to ensure safety
production and to prevent accidents and occupational hazards, and shall meet
the following requirements:

    (1) Each underground mine shall have at least two separate walkable safety
outlets leading directly to above the ground. There in each horizontal
(middle) mining sector and each operating sector (panel) of a mine must be at
least two walkable safety outlets leading to the outlets that extend directly
to above the ground;

    (2) Each underground mine shall be equipped with separate ventilation
system using mechanic ventilators to ensure that underground operating sites
can have enough air current; but in small-scale non-methane mines, if air
current necessary in the underground operating sites is ensured, free
ventilation is acceptable;

    (3) Lanes in the mine shall meet the need for walking, transport,
ventilation, and installation, maintenance and construction of safety devices
and facilities;

    (4) Pillars in lanes and apical plates in excavating sites shall be
managed to ensure safety in operating sites;

    (5) Sufficient number of ore-columns for safety insulation shall be
retained between neighboring underground mines, between underground mines and
opencast mines, between underground mines and old kilns. Sufficient number of
ore-columns and rock columns shall be deployed in lanes to ensure safety above
and under the shaft;

    (6) In opencast mines, the height of the steps, the width of the platform
and the angle of the slope shall meet the need of safe operations and ensure
stability of the slope. In sand-excavating pools, sufficient distance shall be
kept between the boundary of the pool and buildings on the ground and
facilities to ensure safety;

    (7) Water-preventing and water-draining systems shall be installed on the
ground and in the shaft to prevent surface water from trickling into the shaft
and into the opencast mines;

    (8) In slide mines, safety measures shall be taken to prevent and tackle
jams;

    (9) In shafts where self-ignition of gases is possible, main transport
lanes shall be deployed in rock layers or in ore layers where self-ignition is
unlikely, and, effective measures for precaution, for instance, grouting up,
to prevent self-ignition, are necessary;

    (10) Ground fire-fighting equipment used in mines shall conform to state
provisions regarding fire-fighting. In each shaft, there shall be fire control
and fire-extinguishing devices and apparatuses;

    (11) Electricity supply and distribution system on the ground and in the
shaft shall conform to relevant state provisions;

    (12) Hoisting and transport facilities, devices and equipment in each mine
shall meet the following requirements:

    (a) Wire ropes, linking devices, hoisting vessels and security chains
shall be maintained with sufficient safety coefficient;

    (b) There between the hoisting vessels and walls of the shaft, and the
beams in the stairwell, and between two hoisting vessels, adequate gaps shall
be maintained;

    (c) The hoisting cable winch and the hoisting vessel shall be equipped
with reliable protective devices;

    (d) Types of electrolocomotives, electric wire and railroads shall be
selected to meet requirements for safety;

    (e) Mechanisms for conveying personnel shall be equipped with reliable
protective devices; and

    (f) hoisting and transport equipment shall be equipped with sensitive and
reliable signal devices;

    (13) In each underground mine, there shall be a dust-preventing system and
water supply system. In all operating sites on ground and underground where
dust will be generated, comprehensive measures for preventing dust shall be
taken;

    (14) In underground mines where explosions may be caused by gas and mine
dust, explosion-proof electric appliances shall be used and measures shall be
taken to prevent dust and to insulate explosions;

    (15) In underground mines where radioactive minerals are excavated, the
following requirements shall be met:

    (a) Quantity and quality of the intaken air shall meet the need for
reducing radon in shafts, besides, interdrafting and circulation of dirty air
shall be avoided;

    (b) Main air-intaking channels shall be opened outside the ore lode.
Air-intaking channels built through ore lodes or crevices in rock shall be
protected from the release of radon with certain measures;

    (c) Retreating recovery method shall be adopted; and

    (d) Measures shall be taken to prevent sewage from flowing scatteringly in
shafts and a close drainage system for sewage shall be built;

    (16) Depots in mines for storing explosive materials shall meet the
requirements stipulated by state;

    (17) In sites for dumping earth and gangue, safety measures shall be taken
to prevent mud-rock flows and other hazards; in tailings, there shall be
safety devices for preventing accidents such as collapse;

    (18) Precautionary measures shall be adopted for preventing landslides and
other hazards caused by ground collapse as a result of mining operations;

    (19) Each underground mine shall be equipped with adequate number of
instruments for check and test of draft and for detecting poisonous and
harmful gases and underground environment. In shafts where gases are likely to
burst out, a monitoring system or detecting instruments shall be installed;

    (20) Facilities for transport and communication providing contact with
outside shall meet the safety requirements; and

    Article 11  For excavating operations, operative rules shall be made, in
which technical measures and organizational measures are set to ensure safety
of working personnel, which can be timely revised and supplemented whenever
circumstances have changed.

    Article 12  Mining excavation can be performed only when the following
diagrams and data are available:

    (1) geological charts (including hydrographic charts and engineering
charts);

    (2) general layout of the mine and contrast diagrams above/under the shaft;

    (3) layout of the shaft, lanes and excavating sites; and

    (4) main systems for safe operations and protection in the mine.

    Article 13  Mining enterprises shall perform excavation within the area
approved by mining license. Excavation beyond layers and boundaries shall be
prohibited.

    Article 14  The following equipment, apparatus, protective articles and
safety detecting instruments shall conform to national safety standards or the
trade safety standards; those which do not may not be used.

    (1) equipment for excavation, support/protection, containing/conveying,
transport, hoisting, ventilating, draining, gas-extracting, air-compressing
and cranes;

    (2) electric motors, transformers, switchboards, electric switches and
electric control apparatus;

    (3) blasting apparatus, communication apparatus, miners’ lamps, cables,
wire ropes, supporting/protecting materials and fireproof materials;

    (4) detecting instruments and meters for safety and hygiene;

    (5) protective articles and life-saving devices such as self-saving
devices, protecting cap, dust-proof mask/gas mask, protective clothing and
protective shoes; and

    (6) other equipment and apparatus that serve special safety needs as
designated by the competent department concerned.

    Article 15  Mining enterprises shall carry out regular inspection and
maintenance on mechanic-electric equipment and its protective apparatus and
safety detecting instruments, and shall set up technical files to guarantee
safe use.

    Persons irresponsible for operating the devices may not operate them.
Persons not on duty may not perform electric operations. Persons who operate
electric equipment shall be protected with reliable insulating devices. When
electric devices are under repair, the devices shall be cut off from the mains.

    Article 16  Density of poisonous and harmful substances in the air over
operating sites may not be allowed to exceed national standards and trade
standards. Regular inspections shall be performed by following the methods of
the state as follows:

    (1) For operating sites where dust prevails, inspections shall be
conducted at least twice a month;

    (2) For operating sites where TNT is involved, inspections shall be
conducted at least once a month;

    (3) For operating sites where radioactive material is involved,
inspections shall be conducted at least three times a month;

    (4) For other operating sites where poisonous and harmful material is
involved, inspections shall be conducted at least once a month in shaft, at
least once every quarter of a year above ground; and

    (5) Inspections for respiratory dust done on individuals shall be
performed at least once every quarter of a year.

    Article 17  In underground excavating operations, the roof and slab shall
be checked by following operating rules. When excavation is performed through
geologically fractural zones or other points where the roof and slab appear
fractural, supportive columns shall be strengthened.

    In open-cutting operations, it is necessary to set limits on the stripping
bank’s height, width and angle of boundary slopes at each step, by following
stipulations set in design documents. Stripping operations and earth-removing
operations must not cause jeopardy to lanes in deeper depth and in neighboring
lanes.

    Article 18  In coal mines and other shafts where gas explosion is
possible, it is necessary to enforce strict gas inspection. No cigarette and
lighter are allowed to be brought into any shaft.

    Article 19  Under the following circumstances, to perform excavation of
mines, special design documents shall be written and submitted to the
authorities in charge of mining enterprises for approval:

    (1) Where gas is burst out;

    (2) Where bumps are found;

    (3) Where excavation is performed beneath buildings, constructions and
railroads that must be protected;

    (4) Where excavation is performed underwater; and

    (5) Where excavation is performed in regions where geotemperature is
abnormal or where hot water gushes out from underground.

    Article 20  In shafts where self-ignition is possible, the following
measures shall be taken:

    (1) Surface ores and other combustible materials in excavating sites shall
be timely cleaned up and, soon after retreating excavation ends, the
worked-out sections shall be timely shut up;

    (2) To prevent self-ignition, effective measures, for instance, grouting
up, shall be taken; and

    (3) Regular inspection of situation about shut-up of lanes and mining
sections, measurement of temperature and draft where self-ignition is
possible; regular inspection and measurement of temperature, pressure and
component of air around fire area, shall be done.

    Article 21  When underground excavating operations are performed under
any of the following conditions, advance shall be made by probing water ahead:

    (1) near artesian water-bearing layers or water-bearing faults, quick sand
layers, gravel layers, Karst caves and depressed blocks which bear loads;

    (2) near geological zone of fracture which interfaces with surface waters,
or near opened drilled holes which interface with phreatic water layers;

    (3) near old kilns and old lanes full of water, or worked out sections
that have been grouted with mud;

    (4) when sign of water-spouting has been found; or

    (5) when insulating ore columns or rock columns are excavated open to
discharge water.

    Article 22  Quantity, quality and speed of underground draft, and climate
over operating environment must conform to safety rules set for mines.

    In intaken currents over the stope face, by volume, oxygen shall be above
20 per cent while carbondioxide must not exceed 0.5 per cent.

    Temperature of air over the operating sites underground must not be higher
than 28 degrees centigrade, otherwise, cooling measures or other protective
measures must be taken.

    Article 23  In pits where radioactive ore is excavated, the following
measures shall be taken to reduce radon released:

    (1) timely shut-up of the worked-out sections or worn-out pits or lanes
that will be set aside temporarily;

    (2) application of down-feeding draft in mining fields where ore-saving
operation is performed; and

    (3) strict handling of underground sewage.

    Article 24  Exploding operations in mines and manufacturing, storing,
conveying, testing and destroying of exploding materials must be handled
strictly according to relevant state provisions.

    Article 25  Mining enterprises shall be responsible for taking
comprehensive precautionary measures to contain dust hazards in ground and
underground operating sites where dust may prevail.

    In underground mines where pneumatic tools are used for drilling, it is
prohibited to perform dry drilling.

    Article 26  Mining enterprises shall set up and improve certain rules for
inspection and maintenance over on-ground depressed zones, earth dump sites,
gangue piles and depots in tailings and take protective measures against
probable hazards.

    Article 27  Mining enterprises shall shut down mines according to relevant
state provisions, and take preventive measures against possible hazards after
they are closed. The report about shutting down mines shall include the
following:

    (1) situation of the excavated area and worked-out sections after they are
shut down;

    (2) measures taken to close the shafts/pits; and

    Article 28  Mining enterprises shall set up and improve responsibility
systems for safe production as follows:

    (1) responsibility system for safe production on administrative leaders;

    (2) responsibility system for safe production on functional institutions;
and

    (3) responsibility system for safe production on working personnel on post.

    Article 29  Superintendents of mines (including directors of mining
bureaux, managers of mines, and the same below) shall bear the following
responsibilities for safe production in the enterprises:

    (1) conscientiously implementing stipulations set in the Mining safety Law
and these Regulations and other laws and regulations about safe production in
mines;

    (2) making rules for management of safe production in the enterprise;

    (3) to meet practical need of safe production, providing qualified
personnel and conducting on-the-shift field inspection on every operating site;

    (4) taking effective measures to improve working conditions for employees,
to ensure timely supply of materials, apparatuses, equipment, instruments and
protective items, necessary for safe production;

    (5) conducting safety education and training for employees according to
the provisions of these Regulations;

    (6) making preventive and emergency plans against calamities in mines;

    (7) taking timely measures to handle hidden dangers of accidents in mines;
and

    (8) timely and truthfully reporting any accident having occurred in mines
to the administrative department in charge of labor and the authorities in
charge of mining enterprises.

    Article 30  Mining enterprises shall set up institutions or provide
full-time personnel responsible for safe production in the light of practical
needs. The full-time personnel must have been trained and endowed with
professional knowledge and experience in safety work in mines, competent for
field inspection on safety.

    Article 31  Superintendents of mines shall, on a regular basis, be
accountable to congresses of employees or assemblies of employees on the
following subjects and submit themselves to democratic supervision by
employees:

    (1) important decisions on safe production in the enterprises;

    (2) planned technical measures for safe production and their
implementation;

    (3) planned safety education and training for employees and their
implementation;

    (4) handling of proposals and suggestions put forth by employees for
improving working conditions;

    (5) handling of major accidents; and

    (6) other important matters concerning safe production.

    Article 32  Employees in a mining enterprise shall enjoy the following
rights:

    (1) a right to obtain information concerning safety and occupational
hazards related to the operating site;

    (2) a right to lodge complaints to departments concerned and the trade
union about situation and existing problems in safe production in the
enterprise; and

    (3) a right to criticize, charge against and report any decision and
action endangering the safety and health of employees.

    Article 33  Employees in a mining enterprise shall perform the following
duties:

    (1) complying with laws, regulations and rules set in the enterprise for
mining safety;

    (2) maintaining production equipment and facilities in the mining
enterprise;

    (3) taking part in safety education and training; and

    (4) timely reporting any dangerous situation and joining in rescuing
operations.

    Article 34  The trade union in a mining enterprise shall have a right to
urge the management of the enterprise to strengthen safety education and
training for its employees and conduct safety propaganda in order to improve
employees’ safety consciousness and technical quality.

    Article 35  Any mining enterprise shall conduct safety education and
training for its employees in accordance with the following stipulations:

    (1) Safety education and training for new employees who are to work in
underground mines may not be below 72 hours. They shall be put to exams and
work under the guidance of experienced employees for 4 full months and once
again be put to tests and pass the tests before they can work independently.

    (2) New recruited employees to be put to work in opencast mines shall
receive safety education and training for no shorter than 40 hours and be put
to exams and get qualified before they can work on their own posts.

    (3) Employees who have changed to new type of work or operations that
apply new arts shall be retrained and pass exams before they can work on their
new posts.

    (4) All operators in production shall receive on-the-job safety education
and training for no shorter than 20 hours each year.

    The mining enterprise shall pay wages to employees during the period of
safety education and training.

    Safety education and training and its outcomes of tests shall be put into
individual records of the employees.

    Article 36  Safety education and training for employees of a mining
enterprise shall include the following items:

    (1) every employee’s rights and duties as endowed by the Mining Safety Law
and these Regulations;

    (2) rules of safety operations in mines, regulations and rules of safety
management in mining enterprises;

    (3) safety knowledge concerning the employee’s own jobs;

    (4) identification of signs of various accidents, measures in emergency
and the line of withdrawal when in danger;

    (5) knowledge about the use of self-saving devices and emergency
treatment; and

    (6) other items set by departments concerned in charge.

    Article 37  Various special operators such as gas inspectors, explosion
operators, ventilation workers, signal workers, vessel carriers, electricians,
welding (cutting) workers, pump workers, gas-extracting workers, fan
operators, hoist workers, winch operators, conve