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Business Daily reported the network would involve hidden danger reporting, accident alarms, security surveillance, information distribution and online safety training.
The initial stage completion is set for October with the system fully operational by the end of next year.
A construction plan mapped out by the Shanxi Provincial Government showed the network would cover all coal mines in the province and stand as a major information conduit between security authorities and mine management, Business Daily said.
It is hoped the network will help improve safety, specifically in helping to prevent gas explosions, a common source of underground mine deaths and injuries in the country.