I. Background:
The Tashidian Union Mining Company is located in Tashidian Town, Korla City, Bayinguoleng Mongol Autonomous Prefecture, Xinjiang Uygur Autonomous Region, mainly produces industrial boiler raw coal and reconstructed coal（lump coal for heating supply), the coal quality is soft, is long flame coal, the calorific power is about 6700 kilocalorie. Of which the steam coal has very good market reputation within the region due to its high calorific power and quality, its supply falls short of demand, being a feature product in coal market within the region. At the present the company has employees 548 persons, the total area of mining area is 19.88 square kilometers, the total assets is 92.1245 million yuan, the annual output is about 300 thousand tons. According to exploration survey of the Xinjiang Coal Geology Bureau, the geological structure of the new well field is formed by superposition of two uniclinal structures the Jurassic system and tertiary system, having lower proterozoic group, Jurassic system, tertiary system and quaternary system, with Jurassic system as main coal seam, the average thickness of coal seam is 8—17 meters, the geological reserves is 64.50 million tons. In 2005, this Company again obtained right of prospecting for 110 million tons geological reserves, from June 2005, the company began accuracy exploring, provided geological accurate measurement report on annual output 1.5 million tons , which established concrete resource base for the company's production capacity of annual output 1.5 million tons.
The Company has established relatively steady sales network: to supply coal of 160 thousand tons to the Tashidian Thermoelectric Power Plant of the Bazhou Electric Power Bureau every year, coal of 180 tons to the Korla City Heating Company and Xinjiang Bohu Reed Industry Papermaking Group Company etc the large coal consumption enterprises; in addition there are small size companies of more than 20 ones, they demand coal supply for about 80—100 thousand tons in total every year.
According to market forecast, in 2007—2010, the annual regional coal demand gap of the Bazhou is about 1.2 million tons, along with the implementation of the project of the Shandong Nuneng Group Company doing capacity-expansion to the Tashidian Thermoelectric Power Plant, the gap will be increase in further step. the existed geological reserves of the new well field of this coal mine is about 60 million tons, within the peripheral zone there will be about 110 million tons of exploration available reserves, this provides resource foundation for the mine extension.
The project has finished the feasibility study report. The 600 tons expansion project of this mine has been reported to the State Development and Reform Commission, and has been replied and approved as completed project, and was listed as ground breaking project in 2005 by the Corps.
II. Construction Contents:
Sinking and driving engineering, ground civil work, mining mechanical equipment.
III. Total Investment:
168.4502 million yuan.
IV. Benefit Estimation:
The investment recovery period: before income tax is 8.56 years, after tax is 9.07 years (including construction period）；the financial internal rate of return: before income tax is 13.91%, after tax is 12.27%； the financial net present value: before tax is 39.7025 million yuan, after tax is 22.1636 million yuan（discounting rate is 10%）. The profit ratio of investment is 6.72%, the profit and tax rate is 9.48%.
V. Cooperation Mode:
Joint ventures, cooperation.
VI. Contact Way:
Unit: Xinjiang Production and Construction Corps 2nd Agriculture Division Tashidian Union Mining Company
Contact Person: Yang Xiaohua
Tel: 0996－2183468
Address: Tashidian Town, Korla City, Xinjiang
Postal Code: 841011