The Department of Land and Resources of Shaanxi Province has recently issued two mining permits to Guojiawan and Qinglongsi coal mine, both owned by Yulin Shenhua Energy Co., Ltd., a subsidiary of top coal producer Shenhua Group.

These two underground mines have combined production capacity of 11 million tonnes per year, with Guojiawan mine at 8 million tonnes and Qinglongsi mine at 3 million tonnes.

Guojiawan mine, occupying 119 square kilometers, would build a coal washing plant with capacity of 10 million tonnes per year and a dedicated rail line. The mine is expected to commence production in June 2015.

Qinglongsi mine, covering 50 square kilometers, would also build a washing plant with capacity of 5 million tonnes per year and a dedicated rail line. The mine is expected to start production in December 2015.

Main coal product of the two mines would mainly be 6,000 Kcal/kg thermal coal with low ash and sulphur content.