Huozhou Coal & Power Group (HCPG), which produces nine million tons of coal per annum and has 11 coal-related companies, entered into a draft agreement with the Lin County government, located in Shanxi Province, Interfax reported.
The news agency said the agreement maps out how HCPG will operate the Pangpangta coal mine with the intention of raising output to 1.2 million tons by the end of 2005.
The deal also grants permission for HCPG to explore an are of 130 square kilometres surrounding the mine. It is estimated the area holds two billion tons of coal reserves, Interfax said.
The group also plans to build coal washeries, coking plants and power plants close to the mine.
