The Heilongjiang Longmei Mining (Group) Co., Ltd., a reconfiguration of four state-owned major coalbusinesses in the northeastern province of Heilongjiang, was inaugurated in the provincial capital Harbin on Sunday.

The new group, consisting of Jixi, Hegang, Shuangyashan and Qitaihe coal businesses, will boast 16 coal mines, six coal washeries, four power plants and 55 other work units engaged in sales, supply, mine construction, power supply and water supply. The registered capital of the new group is 13 billion yuan (1.57 billion US dollars).

Inauguration of the new group marked a major step by Heilongjiang Province in building itself into a major coal production base, with an annual capacity of more than 100 million tons, said Hu Xiangding, assistant to the provincial governor and head of the provincial bureau of state property.

He said the retooling of the four coal businesses is expected to maximize their respective advantages and avoid malignant competition in the local coal mining sector.

Heilongjiang abounds coal resources, with proven coal reserves totaling 22.4 billion tons. The province's coal output reached 80 million tons last year. The four coal mining businesses of Jixi, Hegang, Shuangyashan and Qitaihe produce more than 60 percent of the province's total coal output.

The new group will invite overseas funds and team up with othercoal firms in northeast region to develop the local coal industry,according to Hu.

Source: Xinhua