The first market-oriented coal exploration company in China,
Guizhou Xineng Coal Exploration Company (GXCEC), was established in
southwestern China's Guizhou
Province and coal exploration of the resource rich province is
now completely opened.
GXCEC was jointly funded by the Guizhou Provincial Coalfield
Geology Bureau, Guizhou Infrastructure Investment Company and
several other prosperous enterprises. By attracting domestic and
overseas investment, the company will try to promote coal
exploitation in Guizhou Province.
Because of the high risk, geological exploration is under the
control of the central government and exploration material is
provided to state mining companies without charge. In recent years,
China has begun to reform its investment system of the sector and
accepts private and foreign investment. Guizhou, with abundant
mining resources, now takes the lead in opening up the coal
exploration market in China.
Earlier this year, the province announced that it was going to
speed up geological exploration and the building of electricity and
coal bases. The measures of opening coal exploration and the trade
of exploration endeavor are carried out. Henceforth, the government
will only fund searching mines and primary geological explorations.
The deep and comprehensive studies will be completed by coal owners
or by special companies such as GXCEC and then transferred to coal
owners.
Xu Lishi, board chairman of GXCEC, said if the earnings from
coal explorations are protected, there will be many opportunities
to invest in the field.
Guizhou is the electricity base of the huge project of west-east
electricity transmission. It will carry out a patch of large coal
projects to provide coal for thermal power stations with a total
output capacity of 10 million kilowatts. A bright future for the
market has lured a lot of investment. The Hong Kong listed Yanzhou
Mining Group has joined GXCEC as a partner. Another listed company
of Hongxing Fazhan has cooperated with GXCEC to exploit the Huaqiu
Coal Mine in north Guizhou.?
Xu added that 12 coal exploration projects of the company had
been approved by the Guizhou Provincial Development Planning
Commission. It is expected that 6 billion tons of coal will be
found and these projects will guarantee the success of the
West-east Electricity Transmission Project.
(China.org.cn by Feng Yikun September 15, 2003)