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Chinanews, Beijing, Nov. 19 – “You ask me the date of my return -- no date has been set…” Recently, a coalmine owner in Shanxi, who had been to Xinjiang to do investigation1 before making investment, quoted verses from an old poem to describe his trip to and his feelings about Xinjiang Uygur Autonomous2 Region.
In 2004, the coalmine owner, Li Anming, sold all of his properties in Shanxi and settled in Xinjiang with his family. They lived in Fukang, a small city not far away from the regional capital Urumqi. There Li built a coalmine with an annual output of 90,000 tons, mainly coking coal. “So far, I have already invested more than 100 million yuan (in the coalmine),” Li said. It usually takes about 3-5 years for a new coalmine to become profitable. Right now, his coalmine is still in the investing period. Li was not the only one in Shanxi who shifted to Xinjiang for making investment. From 2004, about 20 investors3, who formally owned a private coalmine in Shanxi, have come to Xinjiang, most of them settled near Urumqi or the southern part of Xinjiang, to exploit coal resources. At present, lots of Shanxi coalmine owners are considering making investment in Xinjiang. The money they have for investment could reach 400 billion yuan. As coal resources were getting scarce in Shanxi and local government has taken strict measures to control privately-owned small coalmines, many Shanxi coalmine owners think it may be good for them to shift to Xinjiang for making investment now, said a person in charge at the Shanxi provincial4 government resident office in Xinjiang. “In Shanxi, a person with over 100 million yuan might not be able to get a good coalmine for investment now. In addition, land resources in Shanxi are very limited – you might not be able to get enough land to build a coking plant,” said Zhang Jianping, a private coalmine boss from Shanxi who has settled in Xinjiang for many years. By contrast, Xinjiang has rich land resources. In the next stage, Zhang plans to build up an integrated coal processing plant whose business will not just cover coalmine exploitation, but also coal washing and coking, as well as the making of by-products such as reduced iron, crude benzol processing, the utilization5 of coke oven gas and thermal6 electricity, Zhang said. “If we could build a complete chain in coal industry, its economic benefit might be 3-5 times the economic benefit from mere7 coal exploitation, ” Zhang noted8.
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