The explosion, which occurred at about 2 AM (local time) at Urad Front Banner in north China's Inner Mongolia autonomous region, left six persons missing and one injured.
The blast was triggered by explosives used by locals, police said.
The injured person identified as Wang told police that he and six others tried to blast a small hilltop to reach the limestone underneath using explosives made from three tonnes of compound fertiliser, state-run Xinhua news agency reported.
Police said no authorisation has been issued to mine limestone in the area.
Wang has been sent to the hospital and local authorities are still searching for the six missing.