2 Million Tons/Year Raw Coal Mining Project of Shuof Jilin CityiQuLiu Coal Field
1. Introduction to the Project
1.1 Project Background
1.1.1 Product Introduction
In March 2007, Coal Geological Survey of Jilin has made a detailed investigation on Shuiqu– Ping’an coalfield. According to the measure, there should have had about 300 million tons of coal reserves but now it has been proved that there are 122.29 million tons of coal reserves whose coal is kind of jet coal with calorific value between 4000-5700 calories. Moreover, according to the results of this exploration, it is found that the coal field lies in a good geographical location which is good for coal mining, so coal mines are proposed to be built in this region with an annual output of 2 million tons of raw coal because the resources not only can be made full use of, but also it can alleviate the situation caused by the shortage of coal of Jilin.
1.1.2 Market Prospects
（1）Overview of Our Provincial Coal Industry
Jilin province is located in the middle part of northeast China, with Daxing’an Mountains in the west, Zhangguangcai and the Changbai Mountains in the east. As a part of Songliao Plain, Jilin province covers an area of about 180,000 square kilometers. It is convenient in transportation in Jilin, because, first, the total length of the provincial railway is about 4,000 kilometers; second, not only there are railways among the principal mining areas, but also there is the second Songhua River as the waterways for sail. The major coal fields of Jilin province are: Hunjiang, Hunchun, Shulan, Meihe, Yingcheng, Jiaohe, Liaoyuan, etc.
There were five major mining groups in Jilin, which was managed by Jilin Province Coal Group after integration. By the end of June 30, 2011, there were 151 companies with a valid coal mine safety permits in the province. In 2010, the coal production of Jilin was about 42.75 million tons, of which the provincial coal was 28.08 million tons and others were 14.67 million tons.
（2）Characteristics of Coal-bearing Strata
①Tonghua District: Carboniferous Permian: it is the sedimentary result of the land and sea, located in the vicinity of Hun. Taiyuan group contains 2 to 3 layers of coal, 2 layers of which can be mined with the thickness of 5 to 10 meters; while 2 to 3 layers of coal in Shanxi group can be mined or partially be mined and the thickness of which total 10 to 15 meters. The Upper Triassic Camp Subgroups: it is located in the eastern of Hun and it is made up of coarse and fine Qiaoyan mingling with tuff rock and coal seam. It contains 2 layers of coal with a variation of its thickness, which can be mined within 0.88 to 4.90 m thick. It is kind of Fei Gas Coal. The Upper Jurassic Shiren Group: It contains 1 to 10 layers of coal of which 1to 2 layers can be exploited only and the thickness of which is 11.79 m. It is kind of gas coal.
② Yanbian area: The Upper Jurassic Xishanping Group: it is distributed in Helong coalfield, consisting of conglomerate, sandstone, siltstone and coal seams, with 1 to 5 layers of coal whose thickness is 5.05 meters. The Under Tertiary Hunchun group: it is abundant in coal in the Hunchun area which is made up of conglomerate, siltstone, and coal seams, containing 3 to 16 layers of coal and the thickness of coal reaches from 0 to 54.33 meters. It has two kinds of coal: lignite and long-flame coal. The Upper Tertiary TuMenZi Groups: it is made up of conglomerate, siltstone and diatomaceous earth, containing two layers of lignite which is 1 to 17 meters thick.
③ Jilin Central District: Middle Jurassic Taiyang Mountain Group: mainly developed in Shuangyang coalfield, it is made up of conglomerate, siltstone and coal. Although it contains 24 layers of coal which is 1300 meters thick, most of which is unworkable coal. Beside, as the octahedrite is very thick and it contains 4 layers of coal, so that the coal with the thickness of 25.46 meters can be recovered. However, the instability of the coal seam can make itself become thin rapidly or wedge out very soon. The Upper Jurassic coal-bearing strata:names vary from place to place which are described in the following: Liaoyuan Mine: has a fairy ditch group, Liaoyuan group and the Jinzhougang group, respectively compared with Changan Group, An’Min group and Jiuda Group of Pinggang district. Fairy ditch coal group is like a chicken coop. Its thickness of coal is between 0 to 0.60 m and the thickest can reach 14.97 meters. Liaoyuan group contains 1 to 2 layers of mineable coal with the thickness of 5 to 10 meters .The thickest one can reach 40 meters, which has become the major mined coal of Liaoyuan Mine. Jinzhougang Group contains 1 to 3 layers of coal, including the local coal. The total thickness is 5.80 meters. Most of the coal is the gas coal. Naizi shan Group of Jiaohe Mining Area: it contains 8 to 9 layers of mineable coal with a total thickness of 10.33 meter. Its coal is jet coal and gas coal locally. Er’liangzi Group of Dual mining Area: the thickness of coal is 1,100 meters, with 1 to 6 layers of recoverable coal whose thickness is between 0.73 to 9.18 meters. It has two kinds of coal: jet coal and gas coal. Su mi Ditch Group of Huadian Mining Area: the thickness of the coal seam is 1200 to 1800 meters, of which there are 8 layers of coal which is high ash and thin. It has two kinds of coal: jet coal and gas coal. The Lower Tertiary Coal-bearing Strata: its naming and development depend on the circumstances, which are described as below: Shulan Group of Shulan Mining group: it is made up of conglomerate, sandstone, mudstone and coal seam, containing 8 to 12 layers of minable coal seams and local coal seams, the total thickness of which is between 9.59 to 19.35 meters. Shuiquliu Group over the Shulan Group, contains 1 to 2 layers of inferior coal which is kind of lignite. Meihe Groups of Meihe Mining Area:it is made up of conglomerate, sandstone, mudstone, aluminous shale and coal seams with 14 layers of coal with a total thickness of 1.49 to 116.38 meters, of which 7 to 8 layers of lignite can be mined or locally mined. Huadian Group of Huadian Mining Area: it is made up of sandstone, shale , oil shale and coal seams with a thickness of 1780 meters. It contains 19 to 23 layers of coal, of which 3 layers can be mined. The total thickness of the recoverable coal seams is 1.80 to 2.02 meters. Besides, there are 3 to 14 layers of oil shale with 1 to 3 meters thick per layer but the thickest can be 4.25 meters; its oil content is between 8 to 10%, but the highest can reach to 21.65%. In addition, near Moree, Yitong and in the deep of 1920 to 2231 meters, there are 9 layers of minable coal. The total thickness of the 9 layers is 24 meters, of which the thinnest one is 1 meter while the thickest can be 6 meters.
④ Songliao Plain area: The Upper Jurassic Shahezi Group: it is made up of sandstone, siltstone, mudstone, tuff and coal seams. In the city coalfield, there are 1 to 7 layers of coal, with a total thickness of 0.76 to 11.78 meters. Changchun Mining Area contains 3 to 5 layers of coal, with a total thickness of 6.20 meters, which are all jet coal. Lower Cretaceous camp groups:it is made up of the tuffaceous qiaoyan mingling with the coal seams. Along Liu house and Meng Jialing the coal seams are well-developed.the thickness of the mineable coal are respectively 4.13 to 10.53 meters and 2.10 to 6.20 meters. The cities like Yingcheng, Changchun, Siping and so on are locally recoverable. The classifications of coal of these cities are lignite coal and jet coal.
⑤ Daxing’anling area: Red Flag Group of XiaJianLuoTong: it develops in Baicheng of the Tibet Autonomous Region made up of conglomerate, sandstone, siltstone and working layers, whose thickness is 75 to 800 meter. It contains 22 layers of coal, of which 15 layers can be mined, whose thickness is 1.90 to 11.00 meters. The classifications of the coal are the lean coal and the meager coal. Wanbao Group of the Middle Jurassic: it develops in the western of Baicheng, made up of conglomerate, sandstone, tuff and coal seams. It contains 4 to 5 layers of coal which can be mined locally. The total thickness of the mineable layers of coal is 2.55 to 6.50 meters and the kinds of coal are fat coking coal and anthracite.
In the first three quarters of 2015, the GDP of the United States, the Euro Area andJapan's kept increasing, especially the GDP of the “Brics”: China, India, Brazil and Russia has been generally achieved great growth. In addition, IMF has predicted in its latest “World Economic Outlook” that the world economy in 2015 increase 4.2%. T he U.S., t he Euro Area and Japan, which are the three major developed economies, will respectively grow by 2.3%, 1.5% and 1.5%, while China, India, Brazil, Russia and other newly-developing and developing economies will grow by 9.6%, 8.4%, 4.3% and 4.1% respectively. As the world economy continues to rebound, especially when China, India and other newly-developing economies entities keep maintaining a rapid growth, the demand for coal on the international market will undoubtedly keep increasing in 2014.
Jilin province is in the shortage of coal, so 30 million tons of coal has to be transferred to Jilin from other provinces every year. Jilin Coal Geological Survey had developed an exploration to Shuiquliu coalfield and found that there was a coal reserves of 117,162,000 tons (of which: 82,981,000 tons of long-flame coal, 34,181,000 tons of lignite), with a prospective reserves of 300 million tons.It is proven that Shuiquliu coalfield is the largest coalfield of Jilin Province at present.
1.1.3 Technical Analysis
Proven technology of our country is adopted in this project.
1.1.4 Advantageous Conditions of Project Construction
Land- use policy of Shulan city for inviting investment: invested in Shulan by the enterprises inside or outside the city, the industry and the modern service construction projects which are in line with project standard, according to the difference of the investment intensity, the building volume rate, floor area ratio, and the construction period, are supported with the policy “one project one discussion” by the city government after the enterprises finish the payment of land transfer,. Tax policy: for the industrial construction projects which are in line with the standard and invested by the enterprises outside the city, since the year the companies go into operation, the municipal finance get from the VAT, business tax, corporate income tax paid by the enterprises in the previous five years will be used as special funds by the government for supporting the development of the investment enterprises and will be used into the enterprise projects construction annually. In the first three years, the municipal finance will be entirely used for supporting the enterprises provided that the supporting funds can’t exceed the municipal finance get from the VAT, sales tax and corporate income tax. Less than 50% of the municipal finance will be used for supporting the enterprises in the later two years.
Shulan City, located in the area between Changbai Mountains and the Songnen Plain, which is at the junction of the three areas of two provinces( this two province are Jilin province and Heilongjiang province; three areas are: Changchun, Jilin and Harbin), with the scenic Jilin in the south, Harbin city, the capital of Heilongjiang province in the north. Across the Songhua river, there is Changchun city ,the capital of Jilin province in the west, covers an area of ？？4563 square kilometers and has a total population of 670,000 people.
Shulan City is surrounded by few of the top ten nationwide grain-growing counties (or cities) such as Yushu city, Jiutai city, Wuchang city of Heilongjiang province, and Dehui city, Yongji, the key grain-growing city and county of Jinlin province.
The advantageous location of Shulan is good for raw material procurement, transportation, raw materials supply and product sale developing in Jilin, Liaoning, Heilongjiang and Inner Mongolia, as well as throughout the country.
（3）Advantages of the industrial base
Jilin Coal Geological Survey had developed an exploration to Shuiquliu coalfield and found that there were coal reserves of 117,162,000 tons (of which: 82,981,000 tons of long-flame coal, 34,181,000 tons of lignite). At present Design and Research Institute of Coal Geological Exploration of Jilin estimates that there is 300 million tons of coal in Shuiquliu- Ping’an coal field. The calorific value is 5700 kcal / kg. The production capacity of Shuiquliu – Ping’an coal field which is planned to be constructed is 2 million tons which is sufficient for the manufacture and fuel for life.
Shulan is abundant of power resources, for there is a substation and a secondary substation which directly contact with the northeast transmission grid which can supply 880 million kilo watts per hour annually. Besides, because the electricity used actually is 310 million kilo watts per hour, so electricity control will not happen.
There is 1.091 billion cubic meters of water of Shulan, including:1.083 billion cubic meters of surface water, 232 million cubic meters of groundwater,224 million cubic meters of water which can be reused, 229 million cubic meters of groundwater which can be exploited. There are 18 reservoirs in the city, including: a large reservoir, five medium-sized reservoirs, 12 small reservoirs, with a total storage of 371.36 million cubic meters of water.
Transportation of Shulan city is very convenient. La Bin and Longshu, the two railways, runs through the city from north to south and meet each other in the center of Shulan, connecting with the country. Moreover, there are seven main top highways in Shunlan, leading to Changchun city, Jilin city and Harbin city. Roads can be seen everywhere in the towns and villages. With the convenient transportation, it is good for the materials transportation.
1.2 Content and Scale of Project Construction
1.2.1 Scale of Construction
Cover an area of ？？15 square kilometers, with construction area of ？？2 square kilometers. Mainly construct production workshop for building 16 km railway lines, power facilities, two main wells and purchase two sets of integrated mining machinery, four sets of integrated mining machinery etc.
1.2.2 Product Scheme
An annual output of 2 million tons of raw coal.
1.3 Total Investment and Funds Raising of the Project
1.3.1 Total Investment of the Project（detailed in table 1）
Table 1： Summary Table of Total Investment of Project Unit: Ten Thousand Yuan
Name of Expense
Percentage to Total Investment %
Total Investment of the Project（1+2）
1.3.2 Funds Raising
All the investment is funded by the investment companies.
1.4 Financial Analysis and Social Evaluation
1.4.1Major Financial Indicators(detailed in table 2)
Table 2：List of Major Indicators for Financial Benefits Forecast
Unit: Ten Thousand Yuan
Ten Thousand Yuan /a
Ten Thousand Yuan /a
Financial Internal Rate of Return of All Investment
After income tax
Net Financial Present Value（Ic=10%）
Ten Thousand Yuan
After income tax
Payoff Period of All Investment (After Tax)
1.4.2 Social Evaluation
After the completion of the project, not only there will be good economic returns, but also the project has obvious social benefits for the settlement of the urban unemployed people, the laid-off workers and the surplus rural labor. Meanwhile, the project will play a leading role in accelerating the progress of becoming a strong industrial city and advancing Shulan’s industry.
1.5 Ways of Cooperation
1.6 Construction Site of Project
Shuiqulliu Town of Shulan City.
1.7 Progress of Project
Project proposal is completed.
2 Introduction to Partner
2.1 Basic conditions
Name: Shuiqulliu Town of Shulan City.
Address：The 7th Village of Shuiqulliu Town of Shulan City.
Shuiliuqu town is located in the northeastern of Shulan city, 11 kilometers away from Shulan downtown, with Yushu city in the northwest and bordering with Wuchang city of Heilongjiang province in the northeast. Shuiliuqu town covers an area of 203 square kilometers. It has 16 administrative villages and two communities with a total population of 38,400 people. Besides, it covers an agricultural area of 5272 hectares, of which 2,347 hectares is paddy field area, 2,925 hectares is dry land.
Shuiquliu town is of beautiful scenery and advantageous location and convenient transportation. Jiha railway, Ji Wu highway and Shuyu highway pass this town。In this town, cement roads are seen among the villages; post and telecommunications are available; the telephone is in program-controlled as well as the electricity facilities is good.
Shuiquliu town is rich in mineral resources, of which there is about 80 million tons of lignite, over 30 million tons of ball clay, over 60 million tons of refractory clay.
2.3 Contact Methods：
Contact Unit：Shulan Economic and Technical Cooperation Bureau
Contact Persons：Xu XiujunZhang Zhaochen
Contact Methods of Economic and Technical Cooperation Bureau of Project City (Prefecture) Contact Person：Liu Aiguo