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BIZCHINA / Energy/Mining |
Cashmere boasts largest coal reservesBy ()
Updated: 2007-06-25 15:53 Erdus, renowned type of cashmere, is also the name of an up-to-now little-known city in Inner Mongolia Autonomous Region. Soon Erdus, as China's key coal production base, might outshine the fabric's fame due to its natural resources. The Erdus government announced recently that the city probably boasts the largest untapped coal reserves in China. According to a statement issued by the local government in May, total proven coal reserves in Erdus are about 149.6 billion tons - and the future is even brighter. "Prospective coal reserves could be 1,000 billion tons," says Li Zhijiang, vice-chief of the Erdus coal mining industry bureau. Yet it is a new mining area, with many coal chemical projects still waiting for approval from the central government. "Most coal chemical projects are still waiting" evaluations on impacts to the environment, water sources, security and soil conservation studies, says Gao Zhiguo, director of the publicity and education department from the Environmental Protection Bureau of Erdus. Erdus has ranked first in coal output in China for the past four years. In 2004, total proven coal reserves were 124.4 billion tons. In 2006, it jumped to 146.6 billion tons. Edrus's coal output in 2006 was 161 million tons, fully two-thirds of the coal output of the Inner Mongolia Autonomous Region and 8 percent of the national total. Rich natural resources have driven the city's astonishing economic boom. In 2006, the GDP for Erdus jumped 45 percent to 80 billion yuan, compared to 55 billion yuan in 2005. Its per capita GDP increased from $4,600 in 2005 to $6,645 last year. Revenues totaled 148 billion yuan, up by 56 percent from the previous year, which made Edrus the richest city in the region. According to statistics from the city's ministry of land and resources, coal exploration has covered more than 70 percent of its land. The biggest three coalfields are Zhungeer, Dongsheng and Zhuozishan with proven coal deposits of 149.6 billion tons and a total area of 10,100 square km, about 17 percent of the coal-bearing land. Beside those three coalfields, 50,800 square kms of coal-bearing land has not been claimed publicly. It is a vast expanse of virgin land. The coal seams of Erdus are easy to explore, usually near the surface so coal can even be produced by surface mining. The area's small proportion of gas content means few accidents from explosions. In addition, "leakage and landslides hardly happen because of the good hydro-geological condition", an official from Inner Mongolia Autonomous Region's Coal Geology Bureau says. Domestic coal mining giant Shenhua Group and many smaller energy enterprises have now entered the region to get a share of the energy source. Shenhua Group is the largest coal producer in China. Its core coal company, Shendong Coal Co, based in Erdus, accounts for 80 percent of the group's coal output. Shendong Coal Co had total assets of 23.3 billion yuan, with 102 million tons of annual raw coal mined, at the end of 2005, Coal output in Erdus from other coal companies was 85.71 million tons in 2006, while Shenhua Group produced 75.92 billion tons. The big coal industry has also boosted the city's coal chemical production. According to a statement from the Erdus government in early 2007, it will invest billions of yuan into coal chemical projects. Yet "in coal liquefaction, only one project from Shenhua Group has been approved by the government. Others are still waiting for approval", says Gao. "Other coal chemicals, like converting coal to methanol, are also limited by national targets and plans." A notice by the National Development and Reform Commission in June 2006 placed higher entry barriers for coal chemical projects, resulting in more stringent environmental protection policies. By 2010, Erdus is scheduled to reduce by 28 percent its sulfur dioxide emissions from 2005 levels, to 201,000 tons, according to Inner Mongolia's environmental protection bureau. Many existing and new coal chemical projects will be impacted. Located in the southwest of Inner Mongolia Autonomous Region, Erdus is home to the mausoleum of Genghis Khan, the legendary founder of the Mongol Empire. In the Mongolian language, Erdus means "The Buddhism temple of the Holy Lord", indicating the worship that locals had for the ancient leader. Today, Erdus City covers one district and seven counties, occupying an area of 86,800 square km with a total population of 1.4 million people. (For more biz stories, please visit Industry Updates)
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