Lindong Coal Mining Group Co., Ltd (hereinafter referred to LCM) is the earliest state-owned coal mining company in Guizhou with a 50-year history. LCM produced around 1.5 mt coal in 2006 and plans to produce up to 5 mt coal by 2010.

Most of coal mines in LCM have installed CMM drainage systems upon request of safe coal mining, all the drained CMM including VAM are vented directly to air by surface pump stations. All the systems are to drain CMM mostly from worked seams and adjacent seams, to secure methane content in air less than 1%. coal mines have no incentives to drain more CMM as there are no attractive financial returns and legal requirements on improving CMM drainage. For further CMM utilization, the systems should be improved to increase methane content, especially on pre-CMM and CMM from goaf wells.

In 2005, LCM invested pilot CMM drainage installations in two coal mines, Honglin coal mine (HL) and longfeng coal mine (LF), which are in normal operation so far. In 2006, HL and LF produced 300,000 t and 450,000 t coal respectively.

LCM plans to design and implement CMM drainage improvement and utilization projects with the help of CDM, initiating CDM CMM power generation projects as pilot in HL and LF. In May, 2007, LCM established CDM steering group and management office to be responsible for overall project implementation.

With the help of CDM, LCM would improve technologies and management of CMM drainage and power generation and help promote further CMM utilization in remaining coal mines, by importing advanced technologies and equipment and undertaking technical training.

Because of limited financing sources and investment, LCM is also seeking opportunity to cooperate with foreign companies in financing project construction.

Main project activities:

Improve CMM drainage system to secure methane content no less than 30%.
Drained CMM (excluding VAM) are all fueled to generate power, by advanced CMM fueled engines, for captive electricity and China Southern Power Grid.
Installing capacity estimated to be 11MW and 13MW in HL and LF with annual power generation of 79GWh and 94GWh ( based on existing coal production in 2006).

Language to respond in
English/Chinese

Background Information on Company/Purchasing Organisation
Number of Employees
500+

Years established
> 3 years

Overseas Company Contact Details
Mr Zheng Mingjie
Guizhou Clean Development Centre
70 Xinhua Road
Guiyang
China
550002
Telephone: 0086 851 5533098
Fax: 0086 851 5509756
Email: epbfaec@163.com
Website: http://www.gzcdm.com.cn

UK Trade & Investment Contact: ina.ai@fco.gov.uk
Source UKTI