NANCHANG, Nov. 28 (Xinhuanet) -- The earth surface has sunk an accumulative total of 78 square kilometers in Pingxiang city of eastern Jiangxi province due to protracted, excessive coal exploitation, which has affected the production and daily livelihood of approximately 90,000 local residents.

    Pingxiang, renowned as "coal capital" in southern China, has a 1,000-year history of coal exploitation.

    The city has been a crucial energy source supply for eight provinces and municipalities, including the country's largest industrial city of Shanghai and Jiangsu province in east China.

    However, coal exploitation caused a large area of earth surfaceto sink while it laid a foundation for Pingxiang's modern industryand economy.

    According to statistics from the city's development and reform commission, 2.48 million square meters of houses were affected with 88,000 residents in 21,000 families concerned.

    Meanwhile, 41 elementary and middle school buildings and 27 hospitals, as well as were damaged to some extent, along with some county road and water and electricity facilities.

    The State Development and Reform Commission has approved a planto invest a total of 690 million yuan (some 83 million US dollars)to build 370,000 square meters of new housing, 82,000 square meters of school and hospital buildings and a monetary subsidy formore than 6,000 farmers.

    The commission also demanded the city government to beef up administration on coal production so as to stem the sinking of theearth surface in the coal producing area. Enditem