First Auction of Coal Mine Exploitation Rights Successful

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Last updated at: (Beijing Time) Tuesday, November 19, 2002

First Auction of Coal Mine Exploitation Rights Successful

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Following 34 rounds of bidding, 20 years of exploitation rights to a high-grade coal mine located in northwest China were auctioned off Monday in Urumqi at the price of 49 million yuan (about 5.9 million US dollars).

The winner of China's first auction on exploitation rights of state-owned Heishan Coal Mine is Guanghui Mines Development Company in the Xinjiang Uygur Autonomous Region, a subsidiary of Guanghui Industrial Company Limited.

In order to beat the other five bidders, the company had to offer a final bidding price more than five times the initial priceof nine million yuan (about 1.08 million US dollars).

General Manager Dang Minzhong described the bidding process as a "good thing for both enterprises and the government," because the deal is much more transparent and standardized.

Li Chunming, an official with Xinjiang's land and resources department, said the bidding has showcased the value of state-owned assets and has provided valuable experience for the future transfer of state assets to the private sector.

Seventy kilometers from Urumqi City, Heishan Coal Mine, with a proven reserve of 25.66 million tons, produces the best coal in China.

Wu Wenwu, a county official, said through public bidding, the best resources will be channeled to the most competent enterpriseswhose investment will, in turn, help eliminate poverty more quickly.

To date, over 138 kinds of minerals have been found in more than 4,000 places in Xinjiang. Last year, about 25 percent of Xinjiang's industrial output value came from the mining industry.

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