New coal mine projects in China's Inner Mongolia get approval

Mysteel: Two new coal mine projects in China's Inner Mongolia have received official approval from China's National Development and Reform Commission, adding a combined mining capacity of 16 million tonnes (mnt)/year (y) in the region, according to a statement issued by China Shenhua Energy on 3 September.

The Inner Mongolia autonomous region is the country's key coal mining hub in the north. The approved projects aim to ensure a steady supply of fuel to the main coal-consuming areas across the country, as per Mysteel Global.

To be located in Ejin Horo Banner, Ordos City of Inner Mongolia, the Xinjie No. 1 Mine and Xinjie No. 2 Mine will be able to each produce 8 mnt/y of coal, mainly thermal coal for power generation. Both will be operated by Shenhua Xinjie Energy Co., Ltd., 60% of which is owned by China Shenhua Energy.

Having secured official approvals, Shenhua Xinjie Energy plans to proceed with the preliminary project design, safety facilities, and energy-saving assessments for the two mines. The investments for the two mines, excluding mining rights fees, amount to RMB 13.3 billion and RMB 13.2 billion, respectively, the statement revealed.

Additionally, the Suburga Coal Mine, also located in Inner Mongolia's Ejin Horo Banner, gained mining permits from the Inner Mongolian Department of Natural Resources in early August, as disclosed by local authorities.

This underground mine, with a service period extending to 8 August 2054, has a coal production capacity of 8 mnt/y, with the main products being premium thermal coal with a calorific value above 5,500 kcal/kg NAR. The mine, owned by the state-run Huaihe Energy Western Coal and Electricity Group, is expected to supply coal to the Anhui province in eastern China, Mysteel Global noted.

These project developments align with Inner Mongolia's goal of maintaining its coal capacity at high levels to ensure sufficient fuel supplies for the country. In 2024, Inner Mongolia aims to keep its coal mining capacity above 1.2 billion tonnes (bnt)/y, with total coal production reaching 1.22 bnt, according to a statement from the local energy bureau earlier this year.