LGI starts commercial production of bituminous coal
in Inner Mongolia, China
■ Recoverable reserves estimated at 180 million tons, a projected yearly production of 5 million tons
■ Securing a beachhead for the coal business in the world's largest coal producer and consumer China
■ Securing four worldwide live bituminous coal mines and continuing to foster the coal business as the no. 1 business
LG International entered into a full-fledged commercial production of bituminous coal in Inner Mongolia, China—a first time for a Korean company.
On September 26, LGI held a ceremony marking the commercial production at the Wantugou mine in Inner Mongolia. The event was graced by the attendance of LGI President Young Bong Ha and top officials from the Boyuan Group of China.
Previously, facilities had already been installed; related approvals and permissions were obtained; and test production was tried. "Wantugou mine will certainly be a successful joint example between Korean and Chinese companies," President Ha stated during the ceremony.
LGI acquired a 30% stake in this enterprise from the Chinese energy specialist group Boyuan in 2008. The opportunity allowed company to participate in the development of the Wantugou mine. From 2010, test production began and viable achievements were reaped.
The Wantugou mine is the first Chinese bituminous mine to be secured by a Korean company. It is located 60 km south of the Erdos City in the Inner Mongolia Autonomous Region in China.
The underground mine produces coal and covers an area of 21.84 ㎢ (2,184 hectares) and 2.6 times as large as Yeouido in Seoul.
From October of this year, a commercial production with a yearly volume of 5 million tons will begin; the amount will gradually increase up to a yearly volume of 10 million tons.
The Wantugou mine has a recoverable reserve of 180 million tons, a size of 1.8 times as large as the bituminous coal amount last year imported by South Korea. A securing of another nearby large mines is being driven forward. LGI has an over 30-year right to engage in the production of bituminous coal here.
As the world's largest coal producer and consumer, China produced 3.2 billion tons and consumed 3.3 billion tons last year. These figures represent 44% of the world's coal production and consumption, respectively.
Inner Mongolia produces 30% of the total coal of China, making it an important coal production base. The Wantugou mine boasts the largest reserve and production volume among foreign-invested bituminous mines in Inner Mongolia.
"The Wantugou mine development has given LGI a beachhead to engage in China coal business. We are determined to continue to invest in coal business in China, Indonesia, and other parts of the world to foster the coal business as our no. 1 business category," an LGI official said.
LGI is currently pushing forward the bituminous coal business in five mines in four countries that include the Wantugou mine in China, the Ensham mine in Australia, and the MPP mine in Indonesia.
With the addition of this Wantugou commercial production, LGI has now secured four commercial production bituminous coal mines including the Indonesian MPP mine with a current annual output of 3 million tons.
LGI President Young Bong Ha (second from left) and Boyuan Group Chairman Dai Lian Rong (fourth from left) lead the tape-cutting ceremony at the mine-opening event.
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<Wantugou Bituminous Coal Mine Location in China>