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Chinanews, Urumqi, May 17 – China's largest coal chemical project was kicked off in Xinjiang Uygur Autonomous1 Region recently. The project will make good use of the coal resources in Xinjiang and extend the coal production chain.
The new project was invested by the Shandong Xinwen Mineral Group. Construction of the project took place in Ili, Xinjiang. The project involves a total investment of 2.5 billion yuan. When completed, it will have an annual production capacity of 10 million tons. The construction will take two years to finish. When put into operation, it will have an annual sales value of 1.4 billion yuan. Located in China's northwest region, Xinjiang boasts rich coal resources. In the northern slope of Tianshan Mountains, there is a strip of coal mines that extend 500 kilometers. The expected reserves of these coal mines reach 2.2 trillion tons, while at present, only 30 million tons of coal resources are produced in Xinjiang every year. The coal resources in Xinjiang have high heat content and they are easy to exploit. As a result, it usually involves fewer costs for companies to generate electricity by using these coal resources. In recent years, many large state-owned oil companies, including Shenhua Group, Luneng Group and China Huadian Corporation, all went to Xinjiang for the good coal resources there. Information shows that in 2006, about 6,000 companies across the country settled in Xinjiang to seek business opportunities. The new coal chemical base was listed as one of the seven major coal chemical bases in China. In 10-12 years, seven coal mines will be built in Ili, which will generate upwards2 of 30 million tons of coal every year. They can produce 10 million tons of oil products and process 1 million tons of olefin. By then, they will form a large oil-substitute production base in China.
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