Singapore — A unit of Chinese refiner Sinopec has won mining rights to develop a coal mine in the Inner Mongolia region of the country for 30.15 billion yuan ($4.36 billion), a company representative said on Friday.
The mine will be developed by Sinopec Greatwall Energy and Chemical Co Ltd for production of coal chemicals, the official said, who sought anonymity because of sensitivity about speaking with media.
The mine located in Uxin Banner under Ordos city in the northwestern province has a planned production capacity of 10 million tonnes of coal a year, according to a report by official news agency Xinhua last month.
It will supply coal to Sinopec Great Wall’s 800,000-tonne per year coal-to-olefins project, it added.
The first coal chemicals mine in the coal-rich region will support the upgrading of the traditional coal industry and extend the value chain, added Xinhua.
Reporting by Aizhu Chen in Singapore and Qin Ningwei in Beijing; Editing by Muralikumar Anantharaman and Rashmi Aich – Reuters
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