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Home Coal Demand

China’s investment in coal conveyor across Amur River to amount to 685 mio USD

Editor by Editor
2 years ago
Reading Time: 1 min read
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Chinese company Xuan Yuan (XY Group), one of the largest Chinese corporate investors in Russia, plans to invest about 685 mio in the construction of a conveyor system for transshipment of Russian coal across the Amur River for further export to China.

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According to representatives of the China Coal Import Association, various options are being considered for the construction of the facility and the participation of the Chinese company in the project. The project envisages both the construction of a conveyor across the Amur River with a smaller amount of investment and the creation of a transportation conveyor system from an open-pit coal mine. Thus, the ultimate cost of investment will depend on the distance, conveyor length and terms and conditions.

The conveyor system will be created on the basis of a coal terminal located in the Amur region. The specific site will be determined jointly with the Government of the region. The necessary infrastructure for cargo reception will be set on the territory of Heihe urban district of Heilongjiang Province.

The volume of coal transshipment will total 15 mio t per year. At the same time there is a possibility for further increase up to 70 mio t. It is planned to start construction in 2024.

An agreement on cooperation in terms of implementation of the investment project providing for the development of Russian coal imports was signed during the Eastern Economic Forum in 2022 between the Far East and Arctic Development Corporation, the Port Infrastructure Development Center and XY Group. It is expected that Russian-Chinese cooperation in the coal industry will include joint coal mining, transportation and implementation of investment projects.

In January-October 2023, Russian coal exports through border crossings with China increased to 11.1 mio t (+4.6 mio t or +72.2% y-o-y).

Source: CAA


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