Anglo American studies China coal-to-chem project

16 November 2006 03:27  [Source: ICIS news]

SINGAPORE (ICIS news)--Anglo American is conducting a feasibility study for a $4bn (€3.1bn) coal-to-chemicals project in northern China, a senior company official said late on Wednesday.

The UK-based mining major has completed the pre-feasibility study for the project which will also produce gas and power from coal, the company’s chairman Mark Moody-Stuart said during a presentation in Beijing.

Anglo American will build on an existing coal joint venture in Xiwan, Shaanxi province with Shaanxi Coalfields Geological Bureau and the coal-to-chemicals project is expected to start up in 2009, he added.

He did not elaborate on the type and capacities of chemicals planned for the project.

China is expected to tap on its abundant coal supply to reduce its reliance on crude oil. Several studies on coal-to-liquids and chemicals projects are underway.

State-owned coal major Shenhua Group has selected licensors for its project in Ningxia province.

The joint venture with the local government Shenhua-Ningmei is to produce 1.82m tonnes/year of methanol from coal and 520,000 tonnes/year of propylene from a proposed methanol-to-propylene unit.

A 500,000 tonnes/year polypropylene (PP) unit will also be built as part of the project which was scheduled to start up at end-2008.

Shenhua is also conducting studies with Dow Chemical for a coal-to-olefins project in Yulin, Shaanxi province and with Sasol and Shell for coal-to-liquids projects.

By: Florence Tan
+65 6780 4359

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