A total of 154 people will have new or renovated homes under a government-funded plan to reconstruct a central China village that was damaged by subsidence caused by rampant gypsum mining, local officials said Friday.

The government of Hengshan county, Hunan Province, would cover the reconstruction costs for 33 homes, including 10 that were completely destroyed by subsidence, after housing experts completed an assessment next month, said Zhang Renjun, deputy head of the county government.

The villagers should renovate or build new homes on their own, but the county construction bureau would choose safe sites and draft reconstruction plans, Zhang said.

All the affected people had been evacuated to temporary homes. Each household has received a 200-yuan (29.3 U.S.dollars) subsidy, and the government was planning further compensation, he said.

About 150 mu (10 hectares) of land was affected by the subsidence, which occurred on Nov. 28 and was still occurring. Although there were no injuries reported, it has caused cracks on 23 houses and toppled 10 others in Guoguang village, Baiguo township.

Experts with the provincial geological environment supervision department are studying the area, which has been cordoned off and is under 24-hour police patrol.

The deepest subsidence measures 1.5 meters, and crack in building walls are as wide as a hand.

"I saw my house collapsing. I could do nothing but cry," said Xie Dongxu, who was playing with his grandson outdoors at the time.

Excessive mining of gypsum, used to make cements and plasters, was blamed as the major cause of the accident, Zhang said.

The state-owned Hengshan County Gypsum Mine, located below the village, began operation in 1958. It had three work areas, but the county government permanently closed the No. 1 and 2 areas in May, Zhang said.

Early this year, some villagers went down the shaft and discovered a huge underground hole. They appealed to higher authorities for help, but in vain.

The township had abundant gypsum deposits, but was unsuitable for large-scale mining, he said. "The ground surface here is as thin as 47 meters and any further excavation could lead to geological hazards."

After the subsidence, the mine and three others nearby suspended operations. "We will identify the people responsible as soon as possible," Zhang said.