Construction of China’s Largest Coal Chemical Project Started in Xinjiang Autonomous Region

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Researched by Industrial Info Resources (Sugar Land, Texas). Construction of the largest coal chemical project in China started in its Northwestern Xinjiang Uyghur Autonomous Region in mid-May. The total investment for the project is $327 million, and the estimated annual sales will be $183 million upon the project’s completion in two years. The annual coal production of the project will be 10 million tons. This project is to fully tap the rich coal reserve in Xinjiang Autonomous Region and it is also part of a bigger plan to build Xinjiang into a super-sized coal, power and chemical three-in-one production base.

The site of the project is in the Kazak Autonomous Prefecture in Xinjiang’s west most Yili District, bordering Kazakhstan.

Xinjiang boasts an abundant coal reserve. The known coal reserve is 100.8 billion tons, 10% of the nation’s total. The projected long-term total reserve reaches 2,190 billion tons, 40% of the nation’s total. Xinjiang’s coal is easy to excavate and is also has high heat efficiency. It is an excellent source for cost effective power generation.

This 10 million ton coal chemical project is invested by Xinwen Mining Group from Shandong province, and already has been listed as one of China’s seven key coal chemical production bases. In the next 10 to 20 years, Xinwen Mining Group is to invest over $3.9 billion into developing the Yili River Valley. Seven coal mines will be built providing a total annual production of 30 million tons of coal. By then, 10 million tons of oil substitution chemicals and 1.2 million tons of olefin will be produced yearly.

In an effort to attract and encourage large mining corporations to explore the coal resources in Xinjiang, the local government reviewed small and medium mines in the region. Those small mines that are not safe and/or did not meet the environmental protection standards were closed. By the end of this year, 80 small mines will be closed. Applications for mines with annual production under 300,000 tons will be not be approved. In the past ten years, Xinjiang closed down over 1,300 small coal mines in total.

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