Ping Hsiang Coal MInes was one of the earliest large-scale coal mines in contemporary China At end of Ching Dynasty, Chang Chih-tung founded Hanyang Iron Works in Hupeh. He was informed that there were high-quality coalfields in Ping Hsiang, Kiagsi. However, because these coalfields were far away from the Iron Works, it was inconvenient to travel between the two places. Thus, instead of exploring and investing in the area, Chang only bought coal from local traders, Some merchants started exploring. Ping Hsiang Coal mines and sold its coal as early as the period of Tong and Sung Dynasty. With the further develpment of Hanyang Iron Works, it increasingly relied on Ping Hsiang Coal Mines But those small Coal trading businesses that employed primitive production methods could not satisty the needs of the Iron Works, Consequently, in 1898, Ping Hsiang Coal Mines Compay was founded and modern machineries were used to conduct massive digging of coal. Kiangsi is an inland region. The people living there generally had a hostile attitude towards foreigners. This, together with the scattering of small cares in ther region, made it difficult to organize construction work. Having gained the offical suuport, the common people had confidence in Ping Hsiang Coal Mines. Foregin loans also increased the financial stregth of the Company. The coustruction of railways improved the transport between the Coal Mines and other parts of the country. All these factors contributed to the success of Ping Hsiang Coal Mines. Such success ever motivated Sheng Hsuan-huai to plan the construction of a new factory for making steel. In 1908, Ping Hsiang Coal Mines was combined with Hanyang Iron Works and Ta-yeh Iron mines to form Hanyehping Iron and Coal Mining and smelting Company. This dissertation aims at indicating some of the problems related to coal mining in the process of modernization throuh a case study on Ping Hsiang Coal Mines.