Establishment of 1st Large Coking Coal Storage and Distribution Base in China

Shanxi Coking Coal Group, Shanxi Xinmin Energy Investment Group, Guangxi Shenglong Metallurgical Co., Ltd. and other six enterprises jointly established Shanxi Coking Sales Rizhao Co., Ltd. unveiled on the 24th, marking the establishment of China's first large-scale coking coal storage and distribution base. Wang Maosheng, chairman of Shanxi Coking Coal Group, introduced that the total investment of the base was 1 billion yuan (RMB). Based on Rizhao Port, Shandong Province, the base will store and distribute 10 million tons of coking coal annually, mainly for iron and steel enterprises around Shandong Province, northeast China and coastal areas along the Yangtze River. It is expected to be completed by the end of 2020. Coke is an important raw material for steelmaking. At present, coking resources are scarce all over the world. Large blast furnaces require more and more high quality and stability of coke. However, there are fewer and fewer strong cohesive coals in coking coal. This contradiction is particularly prominent in China. Iron and steel enterprises need to purchase different kinds of coal for blending to ensure the quality of steelmaking.

"Rizhao Coking Coal Blending Base aims to provide direct coal blending scheme and customized coking coal products for iron and steel enterprises. It will improve coal energy efficiency and reduce pollutant emissions, and at the same time reduce the purchase cost of enterprises." Wang Maosheng said, "This in turn promotes us to improve the technical level of coal blending."

Zhang Hong, deputy secretary-general of China Coal Industry Association, said that the establishment of Rizhao Coking Coal Blending Base meets the needs of the national coal strategic layout and will realize the service and guarantee to the iron and steel industry in a larger scope, at a higher level and at a better level. The Coal Logistics Development Plan issued by the National Development and Reform Commission and the State Energy Administration puts forward that by 2020, 11 large coal storage and distribution bases and 30 annual circulation scale 20 million tons of logistics parks will be built in combination with the layout of national coal emergency reserve construction. Rizhao Port is the largest transit port for coke in China and one of the important outlets for "West-to-East Coal Transport" and "North-to-South Coal Transfer". Shanxi Coking Coal Group, the major shareholder of the project, is the largest coking coal production and processing enterprise and supplier in China. After the unveiling of the new company, Shanjiao Rizhao Coal Coke Logistics Park project will be transferred to the accelerated construction stage.