Heibei-based Jizhong Energy Resource Co., Ltd. expected long-term contract volumes to account for around 60% of its total coking coal supply in 2024, the company disclosed in a recent research briefing.

The company will continue to rely primarily on monthly agreements and not sign quarterly contracts.

For thermal coal, Jizhong Energy said it will cotninue to sign medium- and long-term supply contracts with electricity generators as directed by the government.

The company noted there would be no major changes last year's production. For 2024, new capacity will be added from two sources: the completion of Xingtai mine's west shaft project, which is currently in trial run, and a 120 million-tonne-per-annum capacity expansion at its mines in Inner Mongolia, including 90 Mtpa from Jiaxinde and 30 Mtpa Jiaodong, with approval procedures underway.

Jizhong Energy also provided an update on its subsidiary of Qinglong Coal Industry Co., Ltd. The mine has been shut down and the compensation and capacity replacement plan has been discussed by local government of Taiyuan city, Shanxi province, which agreed with the compensation schemes and equivalent resource swaps, pending higher-level government approval.

Located in Yangqu County, Taiyuan, the mine has reserves of 122 million tonnes of premium coking coal. The 2.4 billion-yuan project was designed for annual coal production capacity of 0.9 Mtpa and a 1.2-Mtpa washing facility to process all raw coal. Construction began in April 2020, led by Jizhong Energy Group (the parent of Jizhong Energy), which originally held a 90% stake.

In July 2020, the company signed an agreement to acquire a 30% stake in Qinglong Coal and take custody of the remaining 60% held by the parent group.

(Writing by Alex Guo  Editing by Harry Huo)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.

Share this article

Connect with us