Ningdong Energy and Chemical Industrial Base yesterday began construction of eight massive industrial projects in northwest China's Ningxia Hui Autonomous Region. With a total investment of 50 billion yuan, the eight projects, which include the Ningdong-Shandong ±600 KV Direct Current (DC) transmission line, mark a new stage in the development of coal-electricity-chemical projects in Ningxia.
The Ningdong-Shandong transmission project is part of China's West to East Electricity Transmission program. When completed, it will deliver 4,000 megawatts, boosting both the local economy and the development of east coast Shandong Province.The Ningdong-Shandong ±600 KV Direct Current (DC) Transmission Line is part of the country's West to East Electricity Transmission program. [Huang Shan/China.org.cn]
Ningdong base is situated southeast of Yinchuan, capital of Ningxia. Its strategic position close to major roads and railways means energy and chemical products can be easily delivered to customers around the province and the rest of the country. Ningdong's 3,500 square kilometers contain 27.3 billion tons of proven coal reserves, about 88 percent of the region's total. It is one of China's 13 key coal production areas, and its high quality coal, with low ash, sulfur and phosphorus content, and high chemical reactivity, is suitable for use both in the chemical industry and for power generation.Qingshuiying Coal Mine in the Ningdong energy base was put into trial production on Dec. 15. [Huang Shan/China.org.cn]
Construction of the energy base is scheduled to complete in 2020. With a total investment of 300 billion yuan, the base will eventually have a production capacity of 130 million tons of coal, 20 million tons of coal-chemical products, and an installed power generation capacity of 16 million kilowatt-hours. Regional GDP will double to 200 billion yuan, narrowing the gap between Ningxia's economy and the national average. Ningxia is currently near the bottom of the national GDP rankings, with only Qinghai and Tibet beneath it.Ningdong Energy and Chemical Industrial Base will double Ningxia's GDP to 200 billion yuan after construction completes in 2020. [Huang Shan/China.org.cn]Global economic downturn affecting coal production
"The Ningdong coal-electricity-chemical base is important to domestic demand expansion and steady economic development," said Zhang Guobao, head of the energy bureau of the National Development and Reform Commission, adding that the new projects launched yesterday would boost related industries and are part of the government's active measures to challenge the financial crisis.
But the global economic downturn has already affected the local energy industry. Mr. He Guopan, a spokesman for the energy base, said several high energy-consuming factories in the region, especially those producing metal products for export, were running under full capacity and, as a result, local electricity generators saw a 45 percent fall in revenue in November.
Mr. Chen, head of Yangchangwan Coal Mine, said that although coal production has been affected by the financial crisis there are no plans to lay off staff. He said the management is concentrating on enhancing product quality and cutting costs by achieving internal efficiencies. He remained confident the mine would be able to maintain production levels and remain competitive. Yangchangwan was the first mine in the area to achieve annual production of over 10 million tons.