December 02, 2008

Taiyuan Steel foraying into energy business

China Securities Journal reported that Shanxi Taiyuan Iron & Steel Co Ltd has decided to build Shanxi Taigang Group Energy Co Ltd which means the steelmaker has further sped up the development of energy related industry.

The new company's business will cover coal exploitation, coal washing and dressing, coal bed gas development and waster heat and waster energy utilization and will attend the consolidation in Shanxi's coal industry after its establishment.

Taiyuan Steel boasts unique advantages to develop energy industry. And it has gained billion tonnes of quality coking coal resources at Linxian, Lvliang with the support the local government.

The coal mine can be built to a 6 million tonnes per year large scale washing cleaned coal mine, and is also one of the largest coal mines in the country in terms of reserves and production.

The coal mine, once put into operation will reap at least CNY 3 billion of profit per annum with potential value of approximately CNY 100 billion. And it will also provide low cost quality coking coal resource to Taiyuan Steel after its completion.