INTERNATIONAL COAL NEWS

Xing An longwall retrofit nearly ready

AFTER being closed for a major retrofit project, US China Mining Group's Xing An operation in Chi...

Donna Schmidt

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The company said Wednesday that the project was on schedule to return to full production by that time after being closed at the end of its 2009 fiscal year. Partial production commenced at the operation last November.

While US China Mining did not indicate the models of the new equipment at the thermal mine in the northern region of the Heilongjiang Province, it did say that the new fleet would transition it from a room and pillar to a longwall operation.

The upgrades were done to improve efficiency, safety and production, which can now be performed year-round.

"Once testing is complete and we receive regulatory approval, we expect to reach full production capacity by the end of May. This, along with contribution from our coal sorting business, will help accelerate our revenues and profitability in the second half of this year," company president Hongwen Li said.

Beginning in the second half of next year, US China Mining expects the mine’s permitted production to jump from 600,000 tonnes to 900,000t annually, pending government approval.

"With 11.79 million tonnes of minable reserves at our Xing An mine, the projected increase in permitted production will help meet strong demand in Heilongjiang Province, while driving incremental revenue growth for our company," he said.

US China Mining operates the Tong Gong coal mine in the northern region of the country, about 175 kilometers southwest of Heihe. It also runs the Hong Yuan and Sheng Yu coal mines in the city of Mohe.

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