The First Modern Coal Mine in Qinghai Province, West China, Is Put into Operation

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Researched by Industrial Info Resources (Sugar Land, Texas). Yuka coal mine, the first modern coal mine in Qinghai province, a province bordering the southeast side of Tibet Autonomous Region in West China with a production capacity of 900,000 tons, was put into operation on May 22.

Yuka coal mine is a major project listed in the tenth five-year plan (2001-2006) of Qinghai province and requires an investment of RMB 250 million. It started construction in September 2003 and was completed in January 2007. May 22, 2007 saw the coal mine’s first loaded operation which was a complete success.

As stated in Qinghai province’s eleventh five-year plan (2006-2010), the current Yuka coal mine with a production capacity of 900,000 tons will be expanded into one with a production capacity of 4 million tons in March 2008. In 2008 the launch of another coal mine with a production capacity of 8 million tons is expected to be put into operation in 2010. Once built, these two coal mines with a total production capacity of 12 million tons will not only provide energy supply to the local Qinghai market but also to Tibet.

Three companies are major stakeholders in the Yuka coal mine.

This new Yuka coal mine was built by and is to be under the management of Qinghai Coal Mining Group (Xining city, Qinghai province) which is a coal company with a history of over 100 years. Its annual raw coal output topped 44.54 million tons at the end 2006.

Qinghai Salt Lake Industrial Group (Ge’ermu city, Qinghai province) will continue to provide a large amount of the capital needed for the development of Yuka coal mine. Qinghai Salt Lake Industrial Group is located beside the world-famous Cha’erhan Salt Lake and it has China’s largest potash fertilizer production base. The group now boasts a total asset worth of over $11 billion and its annual profit now exceeds $2 billion. Salt lake chemical industry is one of Qinghai Province’s pillar industries.

Yuka coal mine belongs to an even larger coal mine, Datouya coal mine. Datouya coal mine is located in Dachadan County of Haixi city in Qinghai province and it is a small-scale state-owned coal company built in 1956. Its annual raw coal output stands at 100,000 tons and its net fixed asset is worth of $523,000.

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