Fengfeng Group Begins Construction of Integrated Coal Project in Inner Mongolia

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Fengfeng Group (Handan City, Hebei province) has begun construction of an integrated coal project at two coalfields in the Xilinguole Prefecture of Inner Mongolia. The two coalfields, Chagannuoer and Hongger, have total reserves of 3.69 billion tons of coal. Fengfeng will invest roughly $3.8 billion ($1 = 6.8 RMB) in the project.

The first two pits at the Chagannuoer coalfield began construction in late September and are expected to produce 8 million tons per year. After two more pits at the Hongger coalfield are finished, Fengfeng's total capacity will increase to 16 million tons per year for an industrial output worth about $223.5 million. Fengfeng CEO Guo Zhouke said the group has been granted permission to work in the two fields for 100 years.

Half of the recovered coal will go toward the local power generating and coal-chemical industries. The rest of the coal will be transported to Hebei and other areas.

Chagannuoer covers 133.3 square kilometers with reserves of up to 2.97 billion tons, and Hongger covers 71.23 square kilometers with reserves of up to 896 million tons. Fengfeng plans to increase its annual coal production to 25 million tons during the Twelfth Five-Year Plan (2011-15). The coalfields will be helpful to Fengfeng when its resources in Hebei dry up.

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