Chinese authorities have awarded a licence to Lianhai Coal Industry Co. to operate the Baijiahaizi coal mine in Ordos, Inner Mongolia, reported Bloomberg.
The mine can produce for around 97 years and spans nearly 170m², the news agency cited China Coal Resource as saying.
It reportedly has 2.03 billion tonnes of coal reserves and is expected to have a production capacity of 15 million tonnes per year (Mtpa).
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Lianhai secured the licence from the city’s natural resources bureau on 2 April, Bloomberg further stated.
Said to be the largest coal mining hub in China, Ordos produced 197Mt in the initial two months of this year. Its aim is to generate a total of 1.18 billion tonnes for the year.
Chinese officials have directed leaders in mining regions to boost production capacity by 300 million tonnes this year, the news agency said.
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The move is aimed at protecting the country from the impact of surging energy prices.
Bloomberg also said that the National Development and Reform Commission approved the project in 2019.
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By GlobalDataThe latest licence will enable its legal operations although operations commenced even prior to the receipt of local approvals.
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Of the region’s 682 coal mines, 60 were shuttered as a result of the floods that were caused due to heavy rainfall.
