Xukuang Group Begins Ehuobulake Coal Mine Expansion Project in Xianjiang

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Researched by Industrial Info Resources (Sugar Land, Texas)--Following smooth progress in the construction of the railway from Kuche County to Ehuobulake, Xuzhou Coal Mining Group Company Limited (Xukuang Group) (Xuzhou, Jiangsu) recently kicked off the 10 million-metric-ton (MMT) expansion project for its Ehuobulake coal mine.

The Ehuobulake coal mine is about 690 kilometers north of Kuche's downtown area, covering an area of about 33.5 hectares in Akesu City, in the Xinjiang autonomous region. The coal mine is built and operated by Tianshan Coal Mining Company Limited (Akesu, Xinjiang), a wholly owned subsidiary of Xukuang Group, with an initial design production capacity of 0.9 million metric tons in 2002. In March 2009, the coal mine received approval from the National Development and Reform Commission to expand its production capacity to 4 million metric tons through technical innovation.

However, due to the restriction of road conditions, transportation of coal has become a bottleneck for the development of the coal mine. Following the acceleration in the construction of the railway from Kuche to Ehuobulake, the problem of shipping out the coal produced from the northern mountain area of Kuche County will be gradually solved with the completion of the railway in 2011.

By taking this opportunity, as well as the recent deployment of the Chinese government in organizing 19 provinces and cities nationwide to assist Xinjiang through project development, Xukuang Group kicked off the Ehuobulake expansion project. Upon completion, the shortage of coal in South Xinjiang will be alleviated.

As reported, total investment in the expansion project will be about $300 million. So far, various preparation is under progress, and the project is expected to begin operations by the end of 2011. As a support for the project, Kuche County will build the largest coal logistic base in South Xinjiang, and build the county into the largest coal supply base in South Xinjiang through the development of related businesses, such as coal selection.

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