Chinese Government Approves Application for China Datang's Xiertala Above-Ground Coal Mine

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Researched by Industrial Info Resources (Sugar Land, Texas)--The environmental impact assessment approval application for China Datang Corporation's (Beijing) 7 million-metric-ton Xiertala above-ground coal mine was accepted by the Ministry of Environmental Protection on October 19, 2010.

The Xiertala mine, which is east of the Baorixile mining zone in the Hailaer district of Inner Mongolia's Hulunbeier City, covers 20.96 square kilometers and has a total coal resource reserve of 458 million metric tons. In January 2009, plans for the mining zone received approval from the National Development and Reform Commission.

Early in July 2007, China Datang Corporation signed the "Cooperative Development Agreement on Coal Mining, Coal-based Chemistry and Power" with the governments of Hulunbeier City and the Hailaer district. In January 2008, Datang Jilin Power Generation Company Limited (Changchun, Jilin), a regional subsidiary of China Datang Corporation, acquired the exploration rights for the Xiertala coal field from the China Coal 109 Geology Team. Exploration work for the coal field began in April 2008 and was completed in May 2008. The Exploration Report for the Xiertala above-ground coal mine was prepared, and the reserve was then registered at the Land Resources Department of Inner Mongolia in November 2008.

According to the feasibility study report prepared by Shenyang Design and Research Institute (Shenyang, Liaoning), a regional subsidiary of Sinocoal International Engineering Design & Research Institute (Beijing), the coal mine will have a design production capacity of 3 million metric tons per year in the first five years, which will be then expanded to 7 million metric tons per year until the end of its life cycle. The project is mainly comprised of the excavation field, the spoiling field, the ground-production system, the draining system, the industrial field and ground-transportation system. Total investment in the project is about $605 million, including $558 million for the coal mine and $47 million for the special railway.

It's expected that the project will receive approval from the MEP by the end of November this year. Construction of the project is expected to begin in January 2011.

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