CHN Energy Xinjiang Energy Co., Ltd, a subsidiary of state-run China Energy Investment Corporation, started the construction of Hongshaquan No.2 opencast coal mine on December 28, Xinjiang Daily reported.
Hongshaquan No.2 opencast mine is located in Zhundong, Changji Hui autonomous prefecture in the northwestern Xinjiang Uygur autonomous region. The mine is estimated to boast geological reserves of about 5.86 billion tonnes, mainly of high-quality thermal and chemical coal.
The mine is designed with an annual production capacity of 20 million tonnes, of which the approved production capacity in the first phase was 10 million tonnes per annum. A coal preparation plant of the same scale will also be built, the report said.
Hongshaquan No.2 opencast mine is one of the key projects in Xinjiang's "14th Five-Year Plan" period, and also a landmark project for Changji to become a national-level energy reserve and resource conversion demonstration zone.
In 2022, Hongshaquan No.2 opencast mine became one of the 13 coal mines approved by the government to conduct preliminary work against the backdrop of coal production expansion for supply guarantee. In April 2023, it gained approval to construct from the National Development and Reform Commission.
Total investment of the project is planned to reach 9.10 billion yuan ($1.29 billion), with the first phase investment at 5.55 billion yuan.
Presently, CHN Energy Xinjiang Energy operates three opencast mines, including Heishan, Zhundong and Hongshaquan No. 1 mine.
The construction of the No.2 coal mine marked the beginning of the company's 100-million-tonne opencast mine cluster, according to one company official.
(Writing by yan.sun Editing by Harry Huo)
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