The CIMG in conjunction with the organizers of the “China Taiyuan International Coal & Energy New Industry Expo”, The People's Government of Shanxi Province and Ministry of Commerce of the People's Republic of China, organised a trade mission for CIMG members in Shanxi Province. This mission was preceded by another mission to Ningxia Province. The Ningxia Mission was organised in conjunction with the Yinchuan Municipal People's Government Ningxia Hui Autonomous Region, Ningxia province. The CIMG mission visited Asia American Coal Inc.’s Daning Mine as well as Da Tong Ta Shan Coal Mine. The CIMG mission met with officials related to mining and FDI in both provinces including representatives from the BGMR, CCPIT, MOFCOM, Vice-Governor Jin Shan Zhong (Shanxi) as well as senior mining executives from domestic companies.
There were a number of messages regarding the acceptance of FDI coal sector in China. Due to the nationwide shortage of electricity, China will continue its investment in coal production for many years. It was noted that investment in the coal sector will focus in five areas:
• Construction of new coal mines and coal bases
• Improvement of coal mine safety
• Clean coal processing and utilization technology (such as coal washing and coal slurry)
• Coal conversion technology (including coal liquefaction and coal gasification)
• Coal bed methane (CBM) development and utilization
• Mine mouth coal-fired power plants
As well there is a push to improve coalmine management and to increase coal production. As such the Chinese government encourages foreign investment in the coal-mining sector. This shift includes granting the right of mineral geological exploitation of domestic coalmines to foreign companies; however this will be only done on a minority basis and for projects where there is likely to be some level of technology transfer (e.g. Coal bed methane (CBM) development and utilization). Until now, there is only joint venture coal mines in China. To date there is only one JV foreign partner coal mine that is an underground coal mine. One can see that their clear push for FDI, however not for exploration but for services and equipment. As such, there is a clear opportunity for service and equipment providers, but fewer for mining companies.
The mission sought to enhance the understanding of mining in the provincial areas of China. It also sought to create a platform to increase investment and trade opportunities between foreign and domestic mining companies and those companies associated with the coal industry. Ningxia and Shanxi are regarded as resource rich provinces in China and the mission delegates explored business opportunities, established relationships with local partners and gained a better understanding of accessing opportunities China’s coal sector.
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