Northwestern China's Xinjiang Uygur Autonomous Region will produce one billion ton of coal annually by 2020, accounting for at least 20 percent of the nation's total, according to a state plan.

The plan was based on Xinjiang's prospective coal resources of 2.19 trillion tons, or 40 percent of China's total.

Currently, Xinjiang turned out 50 million tons of coal a year. To achieve the 2020 goal, it needs to increase coal output by 80 million tons in each of the coming 13 years or so.

According to local government sources, the region will turn its coal production into chemicals and electricity and transport them to interior areas through transmission lines and pipelines, as freight cost is high for coal in the region.

The sources said China planned to have a total installed capacity of 1.6 billion kw by 2020, much more than the current 600 million kw. Around 600 million kw out of the one-billion-kw increment will come from thermal power facilities, which will help increase China's total annual coal demand to five billion tons. Areas outside Xinjiang will produce 3-3.5 billion tons of coal a year, while the remaining 1.5 billion tons will be provided by the remote autonomous region and filled up with imports. More than 80 coal producers from Shanxi Province, a traditional coal production base in northern China, have flocked into Xinjiang for investment opportunities in coal resources development.

Lu'an Mining from Shanxi has signed a framework agreement with Xinjiang's regional government in comprehensive development of coal resources. It plans to launch in the autonomous region large coal-firing power and coal-based chemical projects and a base of oil production with coal as raw materials. From now up to 2015, Lu'an Mining will invest 46 billion yuan in these projects, company sources said. (US$1 is equal to 7.5074 yuan)

(Xinhua News Agency October 20, 2007)