US China Mining has launched a coal-sorting business at its Xing An mine that produces high-quality thermal coal in China in the Heilongjiang Province of China near the Russian border.
Under the coal-sorting business, the Xing An facility will clean and sort the raw coal collected from the producers of Inner Mongolia.
Coal from Inner Mongolia consist of high level of impurities when compared to the coal produced at Xing An directly.
The firm expects to sort about 500,000 metric tons in the current financial year with gross profits of about $15/t and net profits of $12/t.
US China Mining group president Hongwen Li said the firm expects to sort about 20,000t each month through June this year, at which point the firm anticipates a significant acceleration in sorting volumes.