U.S. China Mining Group to resume production at Xing An coal mine

Source: U.S. China Mining Group, Inc.

U.S. China Mining Group, Inc., a Chinese leader in coal production and exploration in the People's Republic of China, announced that the Company will resume coal production at its Xing An mine in November 2010. The Xing An mine was closed for maintenance and retrofit projects that began at the end of fiscal 2009. The Xing An mine, located in the far northern region of Heilongjiang Province, near the Russian border, produces high-quality thermal coal which is sold throughout China. 

In December of 2009, the Company began a program to upgrade the Xing An mine. These improvements are intended to increase efficiency, safety and boost production at the site. Operations at the Xing An mine will be transitioning from room-and-pillar mining to long wall mining upon completion of these modifications. With these improvements, the Xing An mine will be able to process coal year round. 

The Company also projects that production will increase from 600,000 metric tons per year to 900,000 in 2012. In order to accelerate these modifications, production at Xing An was halted completely in February of 2010 and will now resume production. The Company expects to be at full production with all upgrades completed, by May of 2011. Pricing for Xing An coal has increased strongly from historical levels and currently sells for $44/ton. 

Mr. Hongwen Li, President of U.S. China Mining Group, commented, "The Company distributes coal from Xing An directly to our customers via national railways. Importantly, the government guarantees U.S. China Mining Group preferred access to these railways since they provide needed coal to local power plants. As such, the Company maintains distribution leverage and indirectly controls access to the railway allowing them to drive better pricing of brokered coal as well." 

Li continued, "We will now resume partial operations at the Xing An Mines during the fourth quarter and full operation will commence in the second quarter 2011, which we anticipate will significantly boost our revenues and lower our costs."



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs