China- based Shenhua Group has begun the construction of a RMB10bn (approximately $1.52bn) coal-power and coking project in Inner Mongolia, north China.
The plant is located in the industrial park of the Ganqimaodu Port in Inner Mongolia Autonomous Region, as this site enables Shenhua to use the rich coal resources in Mongolia more efficiently.
The initial phase of construction of the project is slated to become operational by 2012.
Upon completion, the facility will be capable of washing six million metric tonnes of coal, coking 2.4 million tonnes of coal, and producing 240,000 tonnes of methanol and 30,000 tonnes of tar.
A RMB4.7bn ($0.71bn) railway that links Mongolia and China will start operation at the end of 2011, with transport capacity of 60 million tonnes.