China: Inner Mongolia govt okays new 7 mnt/y thermal coal mine

• Huolinhe No.1 mine approved; 7 mnt/y lignite production planned
• Yankuang Energy expands portfolio, targeting 300 mnt/y capacity by 2030

Mysteel Global: On Monday, the National Resources Bureau of Tongliao city, North China’s Inner Mongolia Autonomous Region, granted a mining license to the joint owners of the Huolinhe No.1 coal mine, paving the way for construction on the project to formally commence, Mysteel Global has learned.

Located in Huolin Gol in Tongliao, the Huolinhe No.1 coal mine hosts 51.26 million tonnes (mnt) of recoverable reserves, which mainly comprise 4,000 kcal/kg lignite for power generation. The approved capacity of the mine is 7 million tonnes/year (mnt/y), giving it an approved mine life of 65.6 years, according to government documents.

Authority records show that Yankuang Energy (Huolin Gol) Ltd — a 65% subsidiary of Shanghai-listed coal giant Yankuang Energy Group Co., Ltd. — will be responsible for the construction and future operations of the Huolinhe No.1 mine. A local mining company holds the remaining 35% of Yankuang Energy (Huolin Gol), Mysteel Global learnt.

Yankuang Energy is itself a subsidiary of Shandong Energy Group Co., Ltd., headquartered in East China’s Shandong province and one of China’s largest state-owned energy enterprises.

Two years ago in 2023, Yankuang Energy Group had acquired the exploration rights for the mine with a winning bid of around RMB 3.72 billion ($527 million), the records note.

In recent years, Yankuang Energy has been actively developing new mines and expanding existing mines, as the group works to achieve a coal mining production capacity of 300 mnt/y by 2030.

According to information on the group’s website, by the end of 2024 Yankuang Energy had 34 operating coal mines in China and Australia, with a total capacity of 226 mnt/y. In the first half of this year, its combined raw coal output reached 73.6 mnt, up 6.5% from the same period last year, the group’s half-year report shows.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.