China Energy Corporation (CEC) operates through its subsidiaries, Inner Mongolia Tehong Coal Group and Inner Mongolia Zhunger County Heat Power, as an American limited liability company producing and processing raw coal for heating and power generation in Inner Mongolia, China. The company owns an underground coal mine and an operational power generation facility, which is its primary source of revenue. CEC plans to satisfy a major share of the energy requirements for the People’s Republic of China by providing high quality, clean coal in Inner Mongolia for heating, cooking, and power generation, as it is the exclusive heat supplier to the XuanJiaWan District.
The Central Government of China has taken notice to the great demand for more energy sources, and has recently encouraged certain sectors of development to build more power stations, cooking factories, calcium carbide factories, and silicon iron factories across the country. This places a great demand on China for coal, which creates a rare opportunity for CEC to become a leader within all of China in the production and processing of coal. The company has upgraded its thermoelectric plant and is in the process of expanding infrastructure and improving company methods at the LaiGeYou coalmine. The China Coal Industry Association has named China Energy one of the top 20 Chinese coal producers, and the coal industry is expected to grow at a rate of 9.5% per year.
Inner Mongolia Tehong Coal Group Co., Ltd. is 100% owned by China Energy and was founded in June of 2000. The company’s main operation is the LaiYeGou coal mine, which has a production level of 500,000 tons per year. With the high demand for coal growing substantially, the company has focused on establishing considerable capital investments to enhance extraction, as well as purchasing coal from external sources. Production from the LaiYeGou coal mine serves several key annual contracts, with clients including Zhejiang Fuxing Power Fuel Company (requiring 300,000 tons of powdered coal annually), and the Jiangsu Power Fuel company (requiring 200,000 tons of powdered coal annually). Infrastructure improvements are planned in the near future that will result in a productivity increase of at least 20%.
China Energy’s second subsidiary, Inner Mongolia Zhunger County Heat Power Co., Ltd. was created in 2003, with Heat Power taking an initial 51% stake, with the remaining 49% acquired a year later. Heat Power operates a newly constructed thermoelectric heating and power plant, along with six former heating plants used as heat transfer stations in the XuanJiaWan District, as well as holding exclusive rights to supply heat for the district, and foresees considerable expansion into broader networks.
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