Coal mine workers were injured in the clash.

Shandong Mine, with 210 employees and producing 300,000 tonnes of coal annually, was founded in 1995 as a collectively-owned entity by residents in Fanjiahe village. Villager Fan Zhanfei served as its first general manager.

A shortage of capital forced the villagers to raise more funds and Li Zhao, a man from Shandong Province, invested as a partner.

When Li renewed the mine's license in 2000, he changed the business into a private firm of his own.

Fan and the villagers demanded the authorities nullify the change and took the provincial land and resources department to court.

A court in Yulin ruled in favor of the villagers in 2005 and ordered the new license be nullified. The ruling was backed by the provincial higher court in 2007.

The dispute between the villagers and mine authorities escalated after Li and his team failed to respond to the court ruling, the spokesman said.