Over the next three years, some US$96 million will be invested in the development of the area with a targeted annual output of 8-10 million tons.
The development program of the Binchang area project has secured crucial State Development Planning Commission approval and the project is expected to be launched in October.
The company’s nine shareholders include Shaanxi Coal Transportation and Trade Group, the Shaanxi Coal Field Geological Bureau, the Tongchuan Mining Bureau, the Hancheng Mining Bureau, the Pubai Mining Bureau, the Chenghe Mining Bureau, the Huangling Mining Company, the Shaanxi Coal Construction Co., the Shaanxi Bin County Coal Company.
Interfax China Business News reported that three coal mines were already operating in the area under the project, with combined annual output of about 3 million tons.
One of the tasks expected of The Binchang Coal Mine Development will be to rationalise the utilisation of the area's coal resources more effectively and improve the structure of the province’s coal business.
According to Interfax China, Shaanxi province hosts 162.5 billion tons of verified coal reserves and could potentially generate 92.53 million tons of raw coal every year. The Binchang mining area contains 1.2 billion tons of coal reserves characterized by extra low-sulfur, low-phosphor, low-ash and high calorific value.