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)