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More coal trade with Shanxi on the cards

By Zheng Caixiong | China Daily | Updated: 2007-08-17 07:15
 

The energy-thirsty Guangdong Province will purchase more coal from Shanxi Province, the country's biggest coal producer, in the following months.

Both Huang Huahua and Yu Youjun, governors of Guangdong and Shanxi provinces, have agreed to expand their coal trade in the near future.

Huang said Guangdong, which lacks raw materials and energy resources, needs to expand cooperation with Shanxi and other Chinese regions that have abundant resources to continue its rapid economic development. Yu said his province needs more investors from Guangdong to help develop its rich natural resources.

Shanxi would give priority to Guangdong for coal, according to the governor, who was once mayor of Shenzhen in Guangdong Province.

Guangdong buys more than 30 million tons of coal annually from Shanxi, accounting for one-fourth of the province's total. One of the country's economic powerhouses, it has become the largest coal consumer on the mainland.

Last year alone, Guangdong consumed around 100 million tons of coal, accounting for about 8 percent of the country's total. All its coal is purchased from other provinces.

In addition to coal purchases from Shanxi and other Chinese regions, Guangdong also imports coal from abroad. It will buy more than 20 million tons of coal from around the world this year.

Coal is mainly used by Guangdong's myriad thermal power plants.

Yu is leading a trade delegation from Shanxi Province to attend an investment and trade fair. The fair opened in Guangzhou, capital of Guangdong, yesterday. Yu's 1,000-person delegation will bring a total of 2,437 projects seeking Guangdong investors during the fair.

Shanxi companies are seeking more investment from Guangdong to help develop its energy, tourism, culture and education industries, and attract more Guangdong talents to work in the inland province.

Currently Shanxi has more than 1,500 Guangdong-funded projects while 1,000 Shanxi companies have invested in Guangdong. Their total investment has reached more than 20 billion yuan.

(China Daily 08/17/2007 page15)

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