A coal mine owner suspected of ordering a gang of thugs to beat up a newspaper employee, which led to his death, is reportedly in police custody in northern China.

Hou Zhenrun, owner of the illegal mine in Shanxi Province, handed himself over to police late on Friday night, said Gu Shengming, a spokesman for Datong City government.

Hou allegedly hired eight people to carry out the assault on Lan Chengzhang, and his colleague Chang Hanwen, two employees of the China Trade News, when the two men attempted to investigate Hou's illegal mine in Hunyuan County on January 10.

Lan died of a brain hemorrhage the next day in hospital. Chang suffered a broken arm and minor injuries.

However, the head of the newspaper's Shanxi office said the two were not authorized to conduct reporting missions. Their investigation on the coal mine was "personal."

According to police, Lan told Chang en route to the coal mine that the mine owner could "at least give us 1,000 yuan (US$125) once we show him our identity."

Lan found a mine guard, Zhang Gengen, and told him they wanted to talk with the boss about the legality of the operation. Zhang gave them the phone number of Hou to Lan who called him. At 4pm, Hou took the eight people to the mine and ordered the assault. Hou and the gang fled the scene after the beating.

Police are questioning three men, believed to be the chief offenders in the beatings.