BEIJING, March 15, 2009 (AFP) - Government investigators have recovered eight billion yuan (S$1.8 billion dollars) in funds embezzled from northern China's booming coal industry, state press said Sunday.

Nearly 2,500 audits of coal and coking enterprises in Shanxi province, the heartland of China's mining industry, were carried during the six-month investigation into corruption, the Shanxi Daily reported.

Investigators found about 240 million yuan ($54 million) in unregulated funds set up by individuals, the report said, citing Jin Daoming, who is in charge of the six-month-old anti-graft drive.

The funds were skimmed off and illegally diverted from commercial and tax payments, the report said.

It was not clear how many people would be prosecuted, but investigators vowed to carry forward the fight against graft.

"Currently we are facing some problems as our work is not being implemented uniformly and leaders in some places are not paying enough attention to our struggle to open up accounts," Jin said.

"We need to focus on some cases with a big and shocking nature and severely punish a group of embezzlers."

Shanxi launched its anti-corruption drive after a spate of coal mining accidents in the province that also led to scores of small and privately-run mines being shut.

Shanxi coal barons have become some of the richest people in China as the demand for energy has sky-rocketed during 30 years of unprecedented economic growth.