(Inner Mongolia) Zhungeer Coalfield

1. Energy Supplier- Giant thermoelectricity generation group

Zhungeer coalfield, which lies in the boundary of Shanxi (shortened in Jin), Shannxi(shortened in shann) and inner Mongolian( shortened in meng ), is one of four famous open mines in China ,as well as an extra large-sized energy production base in Western China.

China’s entry into WTO, along with the large-scale development of the western region and the upcoming 2008 Olympic Games brought the increasing capital investment in key projects in the Western region and more electric power demands from Beijing. Tianjin and Tangshan  (Jing-jin-tang) District. Zhungeer coalfield rich in clean and long flame steam coal has become the focus of attention from the electric power plants nationwide.

The second phase of Inner Mongolia Tuoketuo Power Plant construction project and Daihai Large-scale Thermal Power Plant was approved by the national planning commission in 2005, along with the other two under constructed projects, the first phase of Inner Mongolia Tuoketuo Power Plant project and the second phase of Guohua Zhungeer Power Plant project will make a potentially tremendous demands of coal to Zhungeer Coalfield. These power plants, including the First Power Plant of Shenhua Zhungeer, Inner Mongolia Fengzhen Power Plant, Shalingzi and Douhe Power Plant of North China, have formed a large-scale thermal power generation grid network.

It is predicted that the power generation capacity of the power plants designed to fit with the coal quality of Zhungeer will reach over 5 million KW and the demands for thermal coal 30-35 million tons or so by the end of the tenth five year period. Zhungeer coal, as the pillar industry in china’s ethnic region, will play an important role in the development of china’s West region.

The proven reserves of Zhungeer Coalfield are 26.76 billion tons, and the service period of the coalmine is 115 year. The large-scale development started in 1990s, and completed at the beginning of 2000s after more than tan thousand staff‘s ten years of hard work. The total investment reached ten billion Yuan. At present, Zhunge’er has become a new industrial city combined with coal mining, coal preparation, Mine-mouth power generation, and railway & port transportation as a whole with the advantage of multiple industries and production transportation and sales integral system. The enterprises keep a leading position in the coal industry in productivity thanks to the advanced mining and tunneling and coal processing equipments worth US$ 1 billion introduced from the U.S.A.

2. Environmentally friendly coal –hot products in the market

The coal qualification of Zhunge’er Coalfield has the features of low sulfur, low phosphor, high ash melting point, high calorific value and high volatile content suitable to be the steam power coal and the chemical fuel. The coals are also famous for their low pollution. They are popular not only in North China, East China, Northeast and Southeast of China but also in Shanghai, Fujianand Xiamen because of less than 1% ash content. Some washed clean coals were exported to Moroccoto to participate the international competition in March of 2003. The outward sale lines are mainly Qinhuangdao Port, Tianjin Port, Daqin Line, Jingbao Line and Jitong Line. There are nearly 30 thousand tons of commercial coals transported to the stable contract consumer every day. In July, the outward sales created the record of 720 thousand tons. The sales from January to September of 2003 were 5.5 million tons, and the income was 1 billion Yuan, and the profit was more than 10 million Yuan. Green Environmentally friendly Coal registered the national trademark. Clients from Germany, Japan, South Korea, Thailand and Malaysia  send requirement letter to further know Zhunge’er Green Environmentally friendly Coal.

3. large scale operation - sustainable development strategy

The friendship between Consumers of Green Environmental Protection Coal, such as Datang Company and Zhunge’er Energy Company has been established. There are another 14 clients signed the long term contract in the National Coal Ordering Meeting. The competition among production, transportation and sales become more and more fierce. In order to enlarge the production scale and improve the capacity of production and transportation, Zhunge’er Energy Company prepares to face the challenge.

Zhunge’er Energy Company invested 80 million Yuan to enlarge and reform the washery whose annual output was 12 million tons in 1999.At present, it can wash all kinds of coals whose calorific value are 18  81-27  17 MJ/KG and the automatic train loading was achieved.

The advanced equipments improve the production efficiency and decrease the cost, which make the Green Environmental Protection Coal more competitive in the coal market. In the near future, the second big opencast-Ha’ersuo’er Coalmine will be developed. In order to shake off the limitation of transportation, the extension and connection of the railway from Zhunge’er to Hequ and the Shenhua Railway are undergoing. At that time, the outward coal sales can go through Shuohuang Line, which will release the transportation tense of Daqin Line. It is predicted that the profit coming from this railway will be 40 million Yuan.

4. Regional economy-new economic growth engine

As a key state owned company, Zhungeer Coalfield is also a big tax payer. In 2000, it paid 130 million Yuan to government. The first phase of Zhungeer Coalfield construction project was injected 9.26 billion Yuan RMB, the investment was used in the local area and promoted the local economic development and stimulate the growth of related industries such as construction, transportation, hotel, restaurant, real estate, manufacture and process .The railway from Datong to Zhungeer is 264 KM long, and passes through two provinces and five counties and cities. The opening of the railway narrows the communication gap for the local people to the outside world, and provides the great opportunity for the local villagers along the railway line to lead to a more bright future.

The Railway lines from Datong to Zhungeer, Dongsheng to Zhungeer, Hequ to Zhunge’er and Huhehaote to Zhunge’er make it a railway hub to link to the western regions. The highway transportation in the coal field is also very convenient. The office of the Zhungeer government is set in the region due to the strong development trend of the region. The cooperation of companies and local government, along with capital investment of 8.2 billion Yuan has formed the good investment environment and bring more vigor to the local economy.

Large-scale energy base, modern city with coal pillar industry, associated development by companies and local government, and the unique regional economy laid a strong foundation to the west region’s further development.