The China Power Investment Corporation has formally unveiled its initiative to create a large energy industry conglomerate in northwest China with the commencement of the Hongdunzi Project for the Ningdong Energy and Chemical Base in the Ningxia Zhuang Autonomous Region.
Covering 96.852 square kilometers, Hongdunzi Project is estimated to have a total coal reserve of 1.4 billion tons and it is expected to be constructed into a large and modern coal-processing plant, providing about 7,200 jobs by 2012.
Lu Qizhou, general manager of CPIC, said at the launch ceremony that CPIC would be devoted to Ningxia's energy construction and development and it would invest CNY1 billion in the first stage on power projects, coal exploitation, railway transport, metal smelting and processing, coal derivatives production, and coal ash development.
CPIC signed a strategy agreement with Ningxia government in 2007. Up until now, it has invested more than CNY1 billion in the region and has started the work on many projects that cover coal, coal-based chemicals, and wind power. It is reported that CPIC will invest a total of more than CNY100 billion in Ningxia to creat a large energy conglomerate.
CPIC is one of the five major power companies in China. By the end of June 2008, the company's total assets had reached CNY270.2 billion with a total controllable power capacity of 44.95 million kilowatts.
