China Power Investment to Build Energy and Mining Complex in Ningxia Zhuang

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Researched by Industrial Info Resources (Sugar Land, Texas)--China Power Investment Corporation (CPI) (Beijing) is starting the preparation for the Hongdunzi project at the Ningdong Energy and Chemical Complex in the Ningxia Zhuang Autonomous Region. The company officially announced that CPI will start carrying out plans to invest $14.5 billion in Ningxia Zhuang in order to build a large energy industry conglomerate.

The Hongdunzi coal mine extends 96.852 square kilometers and has an estimated total coal reserve of 1.4 billion tons. A large and modern coal-mining complex with auxiliary facilities is expected to be built by 2012, which will create 7,200 jobs.

CPI Ningxia Energy Company, CPI's Ningxia branch, will be in charge of the development and construction of local energy projects. With a Phase I registered capital of $144.8 million, the branch company will focus on power projects, coal mining, coal chemical projects, railway transport, metal smelting and processing, coal derivatives production and coal ash development.

As early as 2007, CPI signed a strategy agreement with the Ningxia government and invested about $144.8 million in the preparation work for projects that cover coal mining, coal chemicals, wind power and thermal power.

Ningxia is one of China's 13 fields with a 100 million-ton coal production complex, and the region's Ningdong coal base is Asia's largest coal chemical manufacturer.

The Ningdong Energy and Chemical Complex, Ningxia's top project, has a fixed assets investment of about $2 billion, according to statistics released at the end of 2007. In 2007 alone, the complex realized new coal production of 10.4 million tons, an installed power generating capacity of 1,200 megawatts (MW) and coal-related chemicals production of 1.25 million tons.

CPI is one of the five major power companies in China and had total assets worth more than $39 billion as of June 2008. CPI has a total controllable power capacity of 449.5 MW and has 16 large-scale power plants with an installed capacity of 1,000 MW.

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