China National Coal launches two projects

China National Coal Group Corp., the parent of Hong Kong-listed China Coal Energy Co., has started the construction of two facilities that will produce oil from oil shale and methanol from coal. In a statement posted in the companys website, the company said it will invest a combined RMB1.66 billion (US$217.6 million) in the two projects in Yilan city, Heilongjiang province in northeastern China. The oil shale facility will process 600,000 metric tons of oil shale to produce 12,000 tons of naphtha and 40,200 tons of fuel oil. Local mines will provide oil shale, as it is a by-product of coal mining. The methanol facility, which will be an expansion of the company’s existing facility in the city, will increase production by 140,000 tons to 480,000 tons in 2009. Both facilities are expected to start up in 2008. (June 1, 2007)