Anhui-based Huainan Mining Industry Group has gained a big step forward in its efforts to explore coal resources in Inner Mongolia, following the approval for a new coal project from the National Energy Administration, local media reported. 

Located in Bojianghaizi County, Ordos in southwestern Inner Mongolia, the new coal mine has a designed capacity of 3 million tonnes per annum. Total investment into the project was estimated to 2.804 billion yuan ($448.6 million).

Together with another two coal mine projects in Ordos approved by the central government - Selian No. 2 and Tangjiahui, Huainan Mining will have a combined annual production capacity of 12 million tonnes in Inner Mongolia. This will help the company get more involved in coal exploitation in the country’s leading production region of the fossil fuel.

As the top coal producer in Anhui province, Huainan Mining would further advance its coal-power integration initiatives by accelerating the construction of power-generation bases in central China and western Inner Mongolia.

Huainan Mining has set an ambitious goal to boost its annual capacity from the current 70 million tonnes to 110 million tonnes by 2015, making it the first 100-million-tonne level coal producer in Anhui province.