S. Korea aims to tap coal supply in China's Inner Mongolia

By Kim Young-gyo
HONG KONG, Aug. 16 (Yonhap) -- South Korea's state-run Korea Coal Corp. (KOCOAL),
said Monday it is aiming to tap coal mines in China's Inner Mongolia as part of
its efforts to explore overseas resources.
KOCOAL, which oversees the coal-mining industry in South Korea, said it is
considering investment in open-pit coal mines in Ordos City, one of 12 major
subdivisions of Inner Mongolia that has coal reserves with great potential.
Inner Mongolia is estimated to have about 732.3 billion tons in coal reserves,
with its coal production capacity expected to reach 1 billion tons in 2015. Coal
production in Inner Mongolia reached 114.5 million tons in 2005 and 637 million
tons in 2009.
Steadily increased production of the fuel in Inner Mongolia has made it the
largest coal-producing region in China, replacing Shanxi Province.
KOCOAL operates three domestic coal mines, producing approximately 1.2 million
tons annually.
The company also said its management has recently met with Chinese officials in
order to seek further cooperation in the coal-mining industry between South Korea
and China.
KOCOAL has begun to invest in overseas mines as demand for coal grows
increasingly in South Korea, with the country's coal consumption reaching 68.6
million tons in 2009,
South Korea is one of Asia's major coal-consuming nations after China, India and
Japan, accounting for about 2 percent of the world's total consumption.
ygkim@yna.co.kr
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