Construction Starts for Coking Coal Project in Xinjiang Uygur Autonomous Region

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Researched by Industrial Info Resources (Sugar Land, Texas). A 600,000-ton-per-year coking coal project started construction at the Meisibulake coal mine in Xinjiang Autonomous Uygur Region on June 28th. Once built, the project will provide raw material to a 1.6-million-ton metallurgical coke project owned by Dahuangshan Hongji Coking Company, Limited, the owner of the Meisibulake coal mine.

Coking coal is a type of coal used to produce metallurgical coke, which is a major raw material for steel mills. This 600,000-ton-per-year coking coal project is invested by Xinjiang Natural Resources Corporation.

Dahuangshan Hongji’s 1.6-million-ton metallurgical coke project is located in Fuzhang Heavy Chemical Industrial Park (Fukang City, Xinjiang Ugur Autonomous Region, West China), one of Xinjiang’s five major industrial bases. Construction began in May 2005. Phase I construction required a $40 million investment and consisted of a 400,000-ton per year metallurgical coke project that went into production in April 2006. By the end of September that year, the unit had produced an accumulated 80,000 tons of coke, 2,976 tons of coal tar and 925 tons of coarse benzene.

Phase II construction started in September 2006 with design capacity of 400,000-ton metallurgical coke per year. It includes the construction of a 400,000-ton coke oven, with an investment of $40 million, and a 6,000-kilowatt power plant, with an investment of $20 million. Phase II construction is expected to be completed by October 2007.

The ultimate target for Dahuangshan Hongji is to annually produce 1.6 million tons of metallurgical coke, 100,000 tons of coal tar and 22,000 tons of coarse benzene, and over 20 varieties of high value-added chemical products. Its annual sales are expected to exceed $265 million.

Northwest Xinjiang Uygur Autonomous Region covers a vast land of over 1.6 million square kilometers, larger than the total of Britain, France, Germany and the Netherlands. This vast land boasts an abundant reserve of a good variety of resources, such as coal, oil and natural gases. The proven coal reserve of Xinjiang Uygur Autonomous Region stands at 2.19 billion tons, accounting for 40% of the national total. Xinjiang’s coal production for the year of 2006 exceeded 30 million tons.

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