Coal-min­ing firm seeks Chi­nese cap­i­tal

China Daily (Canada) - - FRONT PAGE - By WANG RU in Bei­jing wan­gru@chi­

A Canadian coal-min­ing com­pany is seek­ing in­vestors, in­clud­ing from China, to jointly ex­ploit the world largest cok­ing coal field in Bri­tish Columbia, Canada.

Canadian De­hua In­ter­na­tional Mines Group (CDI), an in­te­grated Canadian coal and metal in­vest­ment and ex­plo­ration com­pany, will put its Wapiti River cok­ing coal field on ta­ble to lure part­ners world­wide.

The Wapiti River coal field cov­ers 149.36 sqm, with an es­ti­mate re­serve of 7 bil­lion tons cok­ing coal with low sul­fur and high calorific power.

CDI was es­tab­lished in 2004 by Liu Naishun, a Chi­nese-Canadian. CDI has been ac­tive in de­vel­op­ing re­sources from cok­ing coal, cop­per, gold and iron ore in Canada.

For de­vel­op­ing such and other re­sources, CDI has been part­ner­ing with Chi­nese en­ergy gi­ants such as Shan­dong En­ergy Group Co., Ltd, Kailuan Group, Shougang Group and He­bei Iron & Steel Group Co., Ltd.

Liu said in an e-mail in­ter­view that he be­lieved the project would be ‘a money spin­ner’ af­ter its op­er­a­tion in the near fu­ture.

The Wapiti River project ex­pects the in­jec­tion of an es­ti­mated $1.18 bil­lion in in­vest­ment to start the in­fra­struc­ture con­struc­tion in­clud­ing a 47-kilo­me­ter rail­way and hir­ing of about 700 em­ploy­ees in­clud­ing man­agers and min­ers.

The an­nual pro­duc­tion is pro­jected to reach 10 mil­lion tons and mainly ex­port to Asia-Pa­cific coun­tries such as China, Ja­pan, the ROK and In­dia.

The global coal min­ing in­dus­try is in a down­turn and coal price has slumped dramatically, how­ever, Liu said as the vi­tal in­gre­di­ent of steel mak­ing, cok­ing coal is al­ways a prof­itable busi­ness, more im­por­tantly, a strate­gic re­source for the eco­nomic devel­op­ment.

“Cok­ing coal is an ir­re­place­able as long as we still make steel,” said Liu. “The fast-de­vel­op­ing coun­tries such as China and In­dia will more heav­ily rely on im­port­ing cok­ing coals in the fu­ture.”

He added that the in­vest­ment in the Wapiti River project would re­cover the cost in five years.

Cok­ing coal ac­counts for 10 per­cent of the to­tal global coal re­serve, of which 50 per­cent is in Asia and 25 per­cent in the North Amer­ica.

Born in the north­west China’s Shanxi prov­ince, which boasts the rich­est coal re­serve in China, Liu em­i­grated to Canada in 2003. It was re­ported that he saw a promis­ing fu­ture in Canada.

China, the largest pro­ducer and con­sumer of cok­ing coal, faces an ex­hausted do­mes­tic re­serve of high­qual­ity cok­ing coals.

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