鄂尔多斯煤炭
In addition to its functions as major energy source and important industrial raw materials, coal is essential to realizing the transition of Ordos to green and innovative development. As much as 70% of Ordos land has coal underground. The city features large reserves, wide distribution, good quality and easy mining, with estimated reserves of up to 1 trillion tons and explored reserves of up to 201.7 billion tons, accounting for one-sixth of China’s total. Three coal mines: Jungar, Dongsheng and Table Mountain, boast simple geological structure, stable coal seam hosting, low gases, shallow hiding and complete categories of coal. They span from east to west and are suitable for the construction of large and mega coal mines.
Since the 12th Five-Year Plan, Ordos has locally transformed 400 million tons of coal and contributed a fiscal revenue of RMB 87.78 billion. In 2016, Ordos sold 540 million tons of coal, of which 450 million tons was sold to other cities and 0.9 million tons was sold within Ordos, with the transformation rate reaching 17%. The coal power generated in the whole year amounted to 69.95 billion kilowatt hours, with the average utilization hours of each generation of the equipment standing at 4,067 hours. Ordos produced 1.0417 million tons of oil from coal, 440 million cubic meters of gases, 4.895 million tons of methyl alcohol and 1.67 million tons of chemical fertilizers. The industry of coal accounted for 51.7% of the industry above designated size in 2016, contributing 56% to the growth of industries above designated size. The investment in coal mining and washing reached RMB 31.4 billion, accounting for 10.3% of the total investment in Ordos.
Coal Production
In recent years, Ordos has been promoting “green production and clean utilization” with “low carbon development of high carbon resources” as the principle to harmonize coal development and biological environment. We have reaped substantial results in building Ordos into a key outbound base for clean energy.
1. Proactive Technological Improvement at Coal Mines
Since the 12th Five-Year Plan, Ordos has shut down coal mines, reduced production, improved technologies and upgraded machines. The mechanization level of coal mines has increased from 65% to more than 95%. Between 2011 and 2015, Ordos completed the merger, acquisition, inspection and filing of local coal mines, reducing the number of coal enterprises from 187 to 145, of which 7 were central SOEs, 10 local SOEs and 128 local enterprises. All the efforts have led to the formation of one 100-million-ton coal enterprise, one 50-million-ton coal enterprise, one 30-million-ton coal enterprise and fourteen 10-million-ton coal enterprises. Currently, Ordos has 335 coal mines with designed production capacity of 768.06 million tons per year, including 253 in-operation mines with designed capacity of 549.85 million tons per year, 61 technologically upgraded mines with designed production capacity of 62.01 million tons per year, 21 newly built mines with designed production capacity of 156.2 million tons per year. The average production capacity of a single mine is 2.3 million tons per year, with the highest being 35 million tons per year and lowest being 300,000 tons per year. The level of mechanical mining reaches 95%. The recovery percentage of coal mine areas amounts to 80%. The percentage of coal washing and preparation grows to 90%. A one-stop integration of coal washing, preparation and matching has been fundamentally realized with 32 large coal delivery centers (coal assembly stations) transporting 300 million tons of coal per year.
2. Integration of Coal Washing, Preparation and Delivery
Ordos has spared no efforts in developing washing and preparation processes of clean coal to improve packaging technologies and equipment with gigging and dense medium as the content for large coal preparation factories. All the newly built coal mines are all equipped with high-efficient coal preparation factories and group-mine coal preparation factories. The existing in-operation mines carry out the upgrading of coal washing and preparation. Ordos has organized the construction of demonstration projects for underground coal preparation, built and improved mining areas’ high-quality delivery center, large modern coal logistics parks as well as coal storage and delivery center. At present, Ordos has built 182 coal preparation factories with design washing capacity of 564.4 million tons per year. The year 2016 witnessed the washing of coal up to 486 million tons, with the rate of washing and preparation reaching 90%, including washing rate of 57% or 308 million tons and screen rate of 33% or 178 million tons. As many as 44 coal preparation factories with designed capacity of 191.1 million tons per year are under construction, while 31 factories with designed capacity of 144.6 million tons per year are still being planned. All the newly built coal mines are equipped with high-efficient coal preparation factories and group-mine coal preparation factories that match the size of the mines.
Coal Sales
1. Ordos Carries Out Medium and Long Term Strategic Cooperation on Coal
In 2017, besides the central SOEs, 15 coal enterprises have signed the medium and long term supply contracts with downstream enterprises, with fixed coal supply reaching 108.44 million tons, taking up 63% of the production capacity of coal enterprises. From January to April, according to the fixed medium and long term supply contract, the coal enterprises have accommodated 28.66 million tons of coal. The performance rate in Q1 reached 79.3%, accounting for 26.4% of the entire year, including 100.36 million tons from local enterprises, which takes up 92.5% of the entire contracted quantity. Judging by user categories, power enterprises take up 96.63 million tons of coal (89.2%), metallurgical and chemical enterprises take up 80 million tons (7.3%) while other enterprises take up 38.1 million tons (3.5%). Judging by the contract system, contracts in which both the quantity and price were signed amounted to 82.1 million tons (75.7%) and contracts in which only the supply was signed amounted to 26.34 million tons (24.3%). Judging by the areas, there were 22.14 million tons from the local enterprises (20.4%) and 86.3 million tons from external suppliers.
2. Ordos Promotes Coal Expo
We have successfully held 12 editions of Ordos International Coal and Energy Industry Expo, which has become an important window showcasing our city to the world as well as a bridge enabling many coal enterprises to know and invest in our city. The Coal Expo held in our city in April 2017 had two indoor pavilions and one outdoor exhibition area, where we popularized Ordos Coal as a high-quality national brand. We also popularized out city’s coal chemical industry, Internet Plus, coal information logistics area, large coal mine machinery, clean and efficient utilization of coal, coal mine technical equipment for safe production, and other areas.
As many as 316 local and foreign enterprises attended the exhibition, including Shenhua Group Corporation Limited, China Power Investment Corporation, China Huadian Corporation, China National Coal Group Corporation. The expo attracted more than 20,000 visitors. During the expo, there were more than 80 merchants who reached the intention of cooperation with the exhibitors, while 87 merchants successfully signed purchase and sale agreements, with the contract value reaching RMB 6.87 billion – highest in recent years. As many as 77 coal sale and purchase contracts were also signed, amounting to RMB 1.97 billion. Moreover, other contracts include 6 coal purchase and sale letters of intent, valuing RMB 1.4 billion; and 4 joint project contracts, valuing RMB 3.5 billion.
We also held the Coal Auditorium during the expo and were lucky to invite experts from China National Coal Association, State Administration of Coal Mine Safety, National Energy Administration and others to make speeches at the expo. They had an in-depth discussion on subjects like the form of development of coal, clean and efficient utilization of coal, transition of coal industry, etc.
3. Promoting Ordos Coal as High-Quality National Brand
In order to further promote the market competitiveness of high-quality national brand “Ordos Coal”, Ordos organized and carried out the constructive work of coal quality and brand standardization. It established the Variety and Quality of Ordos Coal, which has already been filed and implemented by the Standardization Administration of China. It has made definition and standard of the indicators of coal categories and quality which were produced and sold in Ordos. Judging by the particle size and quality, the Ordos coal was divided into 6 varieties: lump coal, mixed coal, dust coal, coking coal, ultra low coal and lime coal. In terms of calorific value, the Ordos coal was divided into 24 products.
On November 7, 2016, we officially registered the “Ordos Coal” as trademark certificate of origin in Trademark Office of the State Administration for Industry & Commerce of People of China. We held the “Ordos Coal” brand strategy press conference and strategy promotion conference and special trade fair on November 29 and December 1, 2016 in Beijing and Qinhuangdao, respectively, which expanded the brand popularity and influence.
Coal conversion
1. Ordos Expands Market Power and Builds Coal-Electricity Development Base
In line with the central government’s requirements, Ordos actualized the prevention and control of air pollution, while expanding its influence to energy sectors in Beijing-Tianjin-Hebei and Shandong and providing them with clean energy. Ordos organized the compilation of Ordos Development Plan for Coal Power Base (hereinafter referred to as “The Plan”) and the supporting Water Resources Certification Report and Environment Impact Assessment Report (hereinafter collectively referred to as “The Reports”).
The Reports have been approved by the Ministry of Water Resources and Ministry of Environmental Protection. The National Energy Administration has authorized CIECC to assess The Plan. After much efforts by the Inner Mongolia Autonomous Region and the Ordos government, the central government has agreed to set 2 of the 12 key transmission lines in Ordos, i.e., from western Inner Mongolia to southern Tianjin and from Shanghaimiao to Shandong. These lines will have the transmission capacity of 6.6 million kilowatts and 8 million kilowatts, respectively. At the same time, two supporting electric power projects designed for the two lines are listed into the national power development plan. Their construction scale will reach 14,600,000 kilowatts. These projects, integrated with coal and energy, are equipped with large-capacity, super-critical coal-powered air-cooling generator sets, thereby implementing the ultralow emission standard and maximizing water conservation. The quota of water consumption will be controlled lower than 0.9 cubic meters per (second, million kilowatts). After project completion, local raw consumption will reach nearly 50 million tons per year, which will change the single extensive mode of coal transportation and form the transportation pattern of “delivering high quality coal on the road and poor quality coal in the air”. Besides, building high alumina coal power plants through the lines from western Inner Mongolia to the southern Tianjin can make a breakthrough in solving the problem of making high aluminum fly ash into resources, which provides an important and basic condition for the comprehensive utilization between coal, electricity, fly ash and aluminum from Jungar.
2. Ordos Realizes Efficient and Clean Utilization of Coal
Coal-Made Fuels:
Ordos is an important clean energy output base and a demonstration production base for modern coal chemical industry in China. With some important demonstration projects for coal-made fuels, such as Shenghua, Yitai and Huineng, being completed one after another, coal-made fuel industries in Ordos have achieved breakthroughs and developed from small to big. Techniques are gradually improved and the operation is becoming more steady. With precious experience accumulated in the field of project construction, management, development and technological and talent pools, we have realized the clean and effective utilization of coal in a step-by-step manner. At present, Shenghua and Yitai coal-based oil projects and Huineng coal-made gas project have gone through the whole industrial demonstration process, achieving the goal of safe, stable, sustainable, full-capacity and high-quality operations. The demonstrations of various national-level independent intellectual property technologies have also been improved.
In addition, Phase II and Phase III of Shenghua Coal-Made Oil Project are in the modification and feasibility stage. The report on the change in plan compilation and project construction together with the change of reports about the EIA and water resources certification are being carried out simultaneously. Shenghua Group has extended its request to the National Energy Administration (NEA), which has entrusted CPCIA to assess Shenghua’s first production line for direct coal-liquefaction. After the assessment is completed, Ordos will coordinate with NEA to approve the construction schemes for Shenghua coal direct liquefaction phase II and III and the construction as well.
Yitai’s 20-Million-Ton Coal-Made Oil Project and 4 Billion-Cubic-Meter Coal-Made Gas Project of Beijing Enterprises Holdings Limited, which had been approved by the National Development and Reform Commission (NDRC), are in the pipeline as well. The coal-made gas projects of Shenzhen China Star Optoelectronics Technology, Inner Mongolia New Mongolia Coal Co., Ltd., Hebei Construction & Investment Corporation, CNOOC Limited and BCIG have been listed as national reserved projects. Apart from the preparatory work being carried out by BCIG, all the supporting documents except EIA of other projects have been approved. When constructed, all these projects can transform coal onsite up to 88.23 million tons per year.
Modern Coal Chemical Industry:
At present, coal chemical industry has transformed from having advantage in scale to advantage in quality. Coal chemical products are taking a step upward along the industrial chain towards the high-end. General Layout Plan for Innovation and Development of Modern Coal Chemistry Industry lists Ordos as one of four modern coal chemical industrial demonstration zones.
By the end of 2016, Ordos totally formed the productive capacity for 5,700,000 tons of coal-made formaldehyde; 4,110,000 tons of coal-made fertilizer; 300,000 tons of coal-made N-nitrosodiethanolamine; and 100,000 tons of coal-made DME. Projects under construction include those for 12,000,000 tons of methanol, 800,000 tons of coal-made fertilizer, 2,130,000 tons of coal-made olefin, 540,000 tons of coal-made glycol and 1,200,000 tons of coal-made fine chemical products. At present, the coal chemical industry transforms 30,000,000 tons of raw coal per year. According to the “Layout Scheme”, the oelfin and aromatic hydrocarbon transformed from coal are predicted to consume 20 million tons of standard coal per year during the 13th Five-Year Plan.
By continuously introducing and developing enterprises, finishing the construction of demonstration projects and putting them into service, Ordos has made great advancements in key technologies used in the coal chemical industry. It has also progressed in independent production of major equipment and operation of demonstration projects. Through upgrading technology and management, Ordos basically realized a safe, stable, long-life and high load operation, reduced the consumption of coal and water and improved the treatment of “three wastes” and environmental protection. Meanwhile, the transformation of our modern coal chemical industry gave great impetus to the transformation and upgrading of traditional coal chemical industry and equipment manufacturing industry. It also cultivated a group of backbone enterprises and talents, directly created tens of thousands of jobs and gave a boost to equipment manufacturing in relevant industries, infrastructure construction and related service industry. All of these pushed Ordos’ economic advantages to evolve from resource to industrial economy.
In a nutshell, with the development of coal-to-electricity program and coal chemical industry in Ordos, our on-site conversion rate of coal can increase from the present 18% to more than 30% in the future.
Green Development of Coal Industry
1. Steady Implementation of Green Mines Pilot Projects
From 2011 to 2014, Ministry of Land and Resources released the list of National Green Mines Pilot Units in four batches, among which there are 10 coal mines from Ordos, 5 from Shenhua Group, 1 from Shendong Tianlong Group and 4 from Yitai Group. During the 2014 China Mining Recycling Economy and Green Mine Construction Conference two coal mines were officially named as National Green Mines and listed in the first National Green Mines Pilot Units. Their names are Shangwan Coal Mine (owned by China Shenhua Energy Company) and Heidaigou Opencast Coal Mine (owned by Shenhua Group Zhungeer Energy Co., Ltd.). Till now, there are 2 National Green Mines and 8 National Green Mines Pilot Units in Ordos. At present, Ordos owns 13 newly reported green mines which have met standards while 2 green mines are under construction.
2. Comprehensive Treatment Facilities at Green Mines
First of all, Ordos has steadily implemented geographical environmental treatment. Through reinforcing environmental protection measures, Ordos has built coal storage silos for every underground mine and wind dust-controlling net for all opencast coal mines. By these means, Ordos has realized sealed storage and transportation and basically made coal disappear from view in this major coal production area.
Secondly, it has carried forward the reclamation of temporary lands for coal mines. In 2016, Ordos accepted five applications for temporary land in opencast coal mine, accounting for 269.05 hectares, among which an application has been reported to and answered by the municipal people’s government. In early 2016, all banners and districts signed responsibility certificates to reclaim 1,444 hectares of land. Until now, land reclamation for 1,192 hectares has been finished. At the same time, comprehensive treatments for several consecutive years have “hardened, beautified and brightened” all coal industrial squares in Ordos’ mine areas. Water in mine drainage has all been purified and mined-out areas have all been filled by coal gangues. On the basis of hardening, road greening in mine areas has been completed and arranged with dustmen. The subsidence areas of underground mines have also been greened on landfill basis, while the reclamation areas of opencast mines have also been cleared and greened.
Ordos Transforms Coal Industry Through Reform
1. Vitalizing Coal Companies Through Mergers, Acquisitions and Reorganization
At present, Ordos is encouraging coal-related companies to reorganize themselves mainly through four models: establishing new joint ventures, owning mutual shares, purchasing stakes and signing long-term agreements. Through the process of reorganization, companies are able to reduce coal resource allocation, control newly added industrial capacity and realize the integration between coal and electricity and coal and chemical.
First of all, we encourage the horizontal merger and reorganization between large coal enterprises and small and medium-size coal enterprises, between large state-owned coal enterprises and local private coal enterprises, and between small and medium-size coal enterprises. As of June 2015, there had been 9 enterprises that had completed horizontal reorganization and 17 coal mines (including 3 in Wuhai) that had been merged. So far, coal mining and preparation enterprises in Ordos are made up of 7 central SOEs, 10 local SOEs and 128 private enterprises, displaying a scenario where diverse forms of ownership develop and compete together.
Secondly, we encourage and guide coal enterprises to merge, acquire and reorganize with enterprises engaged in electric power, metallurgy, building materials and chemical industry, so as to extend coal’s industrial chain and reduce excess capacity. For now, 10 mergers and reorganizations or long-term agreements have been signed in Ordos, involving 7.6 billion tons of coal resources and assets reorganization valuing RMB 70.5 billion. These activities have brought back to life investments in coal mines and conversion projects valuing RMB 11.8 billion, which they can create RMB 9.8 billion worth new production values. Such activities can also reduce newly allocated coal resources by 2.4 billion tons, control newly added capacity by 20 million tons per year and absorb existing coal capacity locally by 25 million tons per year.
2. Reducing Excess Capacity by Coal-Electricity-Chemical Linkages
We encourage and guide coal-based power enterprises to develop through cooperation. We guide coal enterprises to expand their market and reinforce cooperation with five major power groups. We encourage the supplier and buyer to sign medium and long-term strategic agreements to stabilize the coal market in Ordos. Excess capacity can be effectively reduced from the supply side. Relying on its advantages in large-scale coal power and coal chemical projects, Ordos can solve overcapacity by improving on-site conversion ability and decreasing external market supply. Increasing the proportion of resources converted on site can effectively lower market supply.
3. Breaking Factor Restrictions through Piloting Reforms for Innovation in Resource-Based Economy
Since the advent of reforms to innovate and develop resource-based economy in Ordos, bottlenecks that restrained the development of our coal and other energy industries have been broken. Environment for innovation and development of our resource-based economy has been optimized, thus the new path to develop and transform our resource-based economy is coming into shape. In terms of factor protection, we carried out a series of pilot reforms in innovation and development of resource-based economy and transition of water right. From the perspective of environmental index, we solved the energy evaluation problems in subjects operated by Inner Mongolia Yitai Coal Oil Co. Ltd., Beijing Enterprises Holdings Limited, Shenzhen China Star Optoelectronics Technology, Inner Mongolia New Mongolia Coal Co., Ltd., CNOOC Limited and Hebei Construction & Investment Corporation by means of scientifically sorting energy consumption index.
Moreover, from the perspective of water index, second phase of water right replacement has been fully completed, displacing water index for 99.60 million cubic meters. We participated in the first phase of trans-league water right transition of the yellow river artery, acquiring 115 million cubic meters of allotted water index. In addition, we explored unconventional water resources and have made use of 22 million cubic meters of coal mine drainage.
