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Yangquan Coal asked to halt three coal mine projects

Yangquan Coal Industry Co., Ltd, one major anthracite producer in northern China’s Shanxi province, has been asked by relevant government authorities to halt construction on three new coal mines, as it has not received official approvals.

Qiyuan Mine, located at Jinzhong City in Shanxi province, had recoverable reserves of 1.24 billion tonnes. It started construction on December 25, 2009.

The project, equipped with washing plant and dedicated railway line, had gained great support from the local governments, as it would help promote the local economic development.

With coal prices falling to the lowest of the past ten years, coal firms are reluctant to open new mines, but local governments have been asking them to accelerate construction for early production to enrich local coffers, mine sources said.

"Qiyuan mine is just one such case," said one source with a state-owned mining company.

However, the official approval of large coal producers is decided by the state government. In March this year, the government of Shanxi province asked Qiyuan mine to completely halt construction (except the ventilation and drainage systems), and actively work to get preliminary approval first.

Another two mines, Shunpoli and the Zhaojia Area mine, were also asked to stop construction, an industry insider said.

Shunpoli Mine, with a planned investment of 5 billion yuan, had a designed annual capacity of 5 million tonnes. It officially started construction in the end of 2012, and is expected to provide 4,000 employment opportunities.

The Construction of Shunpoli Mine was very slow, way far from the requirement for commissioning, the insider said.

source: http://en.sxcoal.com