China Shenhua has announced that its majority-owned subsidiary, Shenhua Xinjie Energy Co., Ltd. (Xinjie Energy),
Original by NLS
China Shenhua has announced that its majority-owned subsidiary, Shenhua Xinjie Energy Co., Ltd. (Xinjie Energy), in which it holds a 60% stake, has received official approval from the Energy Bureau of Yijinhuoluo Banner, Inner Mongolia, to commence construction on the Xinjie No.1 and No.2 mines, along with their associated coal preparation plants. The approval confirms that all required project documentation, including submissions from construction and supervision units, has met regulatory requirements and has been formally registered. With this clearance, Xinjie Energy will now move forward with the compliant and systematic development of both projects.
According to a 2024 announcement from the Ordos Natural Resources Bureau regarding mining licenses for the two sites, Xinjie No.1 Mine is authorized for an annual production capacity of 8 million tons, covering an area of 70.28 square kilometers. Xinjie No.2 Mine has the same production capacity and spans 67.12 square kilometers. Both licenses are valid for 30 years, from February 1, 2024, to February 1, 2054.
The two mines are situated within the Taigemiao mining area in Ordos, one of the last remaining large-scale, undeveloped coalfields in the coal-rich Jin-Shan-Meng (Shanxi-Shaanxi-Inner Mongolia) region. The area serves as a key reserve for Shenhua’s Shendong mining operations, covering approximately 800 square kilometers and holding an estimated coal reserve of 15.3 billion tons. The initial development phase plans for a total annual production capacity of 56 million tons across eight mines (Xinjie No.1 through No.8), with Xinjie No.1 and No.2 leading the development.
Construction of both mines is now underway, with completion expected by 2029. The coal from this region is of exceptionally high quality, characterized by low to ultra-low ash content, low sulfur, and low to ultra-low phosphorus levels. It includes non-caking coal, long-flame coal, and weakly caking coal with high to ultra-high calorific value, making it highly suitable for residential use and power generation, particularly in thermal power plants.