Consortium to Build $6.5 Billion Coal, Steel and Electricity Project in Guizhou Province

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Researched by Industrial Info Resources (Sugar Land, Texas)--Preparations have begun for an integrated $6.5 billion coal, steel and electricity project in Jichangping Town of Panxian County in southwestern China's Guizhou province. The project will be the largest of its kind to be built in southwestern China.

The project will be built and operated by Guizhou Shouqian Coal, Steel & Electricity Company Limited (Liupanshui, Guizhou), a project company under the control of Guizhou Shougang Industrial Investment Company Limited (Guiyang, Guizhou), a fully owned subsidiary of Capital Iron & Steel Group Corporation (Shougang Group) (Beijing). Other firms in the venture include Guizhou Shuicheng Iron & Steel Group (Liupanshui), Pangjiang Coal and Power Group Corporation (Liupanshui), and Guizhou Qiangui Power Generation Company Limited (Liupanshui).

Construction is expected to begin in three years and be complete in five years. Upon completion, the project is expected to generate $4.7 billion in revenues, and have a total profit of $1.06 billion.

Panxian has been called a coal capital, located south of the Changjiang River where there is rich coal and mineral resources. Coal reserves account for 15% and 60% of the total in Liupanshui City and Guizhou province, respectively. Panxian also benefits from convenient transportation options and geographic location, lying between central cities such as Guiyang, Kunming, Nanning and Chengdu. The project will be further extended into the coking, chemical, power, and iron and steel industries.

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