Tangshan Jiahua Coal Chemical Co., Ltd

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Tangshan Jiahua Coal Chemical Co., Ltd. 1. Project Background Tangshan Jiahua Coal Chemical Co., Ltd. is a Sino-foreign joint venture in the coal chemical industry, established as a result of the relocation and reconstruction of Beijing Coking Chemical Plant, with joint investment from Shougang Group, German ThyssenKrupp Mineral Resources & Energy AG, and Tangshan Beijiang Trading Company. At present, the company’s registered capital is 400 million yuan. The share structure of the company is as follows: Beijing Coking Chemical Plant holds 40%, Shougang Group holds 30%, German ThyssenKrupp MinEnegy holds 25%, and Tangshan Beijiang Economic and Trade Co., Ltd. holds 5%. 　　2. Basic Information on the Project 　　2_1 Project Scale 　　The total scale of the project is an annual production of 3 million tons of coke. It will be constructed in two phases; the first phase requires an investment of around 1.2 billion yuan, during which two 55-chamber, 6-meter-high top-loading regenerative coke ovens will be built, along with supporting facilities for coal transportation, coking, purification, power generation, and other related auxiliary systems, enabling an annual production of 1 million tons of coke. At present, coke oven L# in Phase 1 has been put into operation ； Coke oven No. 2 has begun drying process, with commissioning planned for March this year. Phase 2 will involve further investment of around 1.7 billion yuan to build 4 6-meter coke ovens along with the necessary supporting facilities, with an annual production capacity of 2 million tons of coke. Construction is scheduled to begin in 2006, with operation starting in 2008. The first phase of construction gives top priority to source control and environmental protection; half of the 1.14 billion yuan invested is allocated to implementing 29 environmental protection measures, thereby raising the environmental standards above those of Beijiao. This approach ensures that wastewater, waste residues, and exhaust gases are not discharged outside, minimizing environmental pollution to the lowest possible level. 　　2.2 Source of Raw Materials The coal used for coking is mainly supplied by entities such as Shanxi Coking Coal Group, Datong Coal Mining Group, and Hebei Fengfeng Mining Bureau. The main types of coal include primary coking coal, fat coal, 1/3 coking coal, and lean coal. 　　2.3 Main Products and Production Volume The main products in Phase I include 1.08 million tons of coke produced annually, 103 million cubic meters of gas supplied to external parties, 50,500 tons of crude tar, and 13,400 tons of crude benzene. The main products of the second phase are: 2.16 million tons of coke produced annually, 496 million cubic meters of gas supplied to external parties, 100,000 tons of crude tar, and 26,000 tons of crude benzene. 　　2.4 Product Sales The main products of this project are coke and gas. Coke is used for domestic sales and exports; according to the joint venture agreement, domestic sales are primarily purchased by Shougang ； Krupp sells some of its coke products abroad. The users of the gas supply outside the plant are Datang Chemical in Tangshan Seaport Development Zone, Hengtong Thin Plate, as well as industrial and residential users in Tangshan and surrounding areas. 　　3. Construction progress of Phase I of the project On June 2, 2003, Liu Zhihua and Lu Wu, vice mayors of Beijing, gave their approval to the request regarding the relocation and reconstruction of the Beijing Coking Chemical Plant in line with industrial restructuring, and thus the construction of a 3 million tons per year coking plant at Jingang Port began in full swing. 　　June 18, 2003: The Hebei Provincial Development Planning Commission approved the \"Implementation Plan for the Relocation and Construction of a 3-million-ton coking plant at the Beijing Coking Chemical Plant.\" This approval also authorized the initiation of the Jingang Port project, as well as its feasibility study and preliminary design, marking the full entry of the Beijing Coking Plant’s Jingang Port project into the construction phase. 　　On July 4, 2003, a grand groundbreaking ceremony was held for the 3 million tons per year coking project. Leaders such as Ji Yunshe, Governor of Hebei Province, Zhou Si, Deputy Director of the Beijing Municipal Administration Committee, Ding Zhenkuan, member of the Beijing Economic Commission, Zhang He, member of the Tangshan Municipal Party Committee, and Zhang Yaohua, Executive Vice Mayor of Tangshan, attended the ceremony, marking the start of the project’s construction. 　　On March 2, 2004, Tangshan Jiahua Coal Chemical Co., Ltd. was established by four shareholders: ThyssenKrupp Mining and Energy GmbH of Germany, Shougang Group Corporation, Tangshan Beijiang Economic and Trade Co., Ltd., and Beijing Coking Plant. 　　On July 31, 2004, Bai Keming, a member of the Provincial Party Committee; Ji Yunshe, vice member of the Provincial Party Committee and governor of the province; Chen Yutian, another member of the Provincial Party Committee and commander of the provincial military region; and Guo Gengmao, member of the Provincial Party Committee and executive vice governor, went to the Haigang Development Zone in Tangshan City for an inspection, during which they checked on the progress of the construction projects at Jiahua Company. On November 12, 2004, work began on constructing the No. 1 coke oven. On February 5, 2005, the construction of the coke oven body was completed, taking 86 days. 　　On April 12, 2005, the construction work for Blast Furnace No. 2 began. On July 16, the construction of the coke oven body was completed. 　　On September 6, 2005, the 1# coke oven was officially lit for heating up. 　　On November 17, 2005, coal was loaded into Coke Oven No. 1, and at 4:10 p.m. on the 19th, the first batch of coke was produced. 　　On November 25, 2005, heating up of Coke Oven No. 2 began, with production scheduled to start in March 2006. 　　On November 28, 2005, Coker No. 1 was put into operation ； 　　On May 18, 2006, Coke Oven No. 2 was put into operation. 　　4. Outlook for Phase II of the project 　　The construction scope of Phase II of the coking project includes 4x 55-hole JN60 type coke ovens with an annual production capacity of 2 million tons of coke, along with associated coal preparation workshops, coking workshops (including coke screening), gas purification workshops, and the corresponding utility and auxiliary facilities. The welfare facilities of the first-phase 1 million t/a coking plant can be fully utilized. Advanced, mature, and reliable process technologies and equipment will be employed in the project design to ensure that the coking plant can operate on a long-term, stable, and continuous basis, producing high-quality metallurgical coke, coke oven gas, and chemical products ； As a green Olympic relocation project in Beijing, it adheres to the principles of managing waste materials and reducing pollution, in order to meet the requirements of relevant environmental protection regulations. In terms of process flow and equipment selection, advanced energy-saving and consumption-reducing technologies are employed to minimize the use of resources such as water, electricity, and steam, thereby meeting the requirements of relevant energy-saving regulations. 　　With the strong support of Beijing and Tangshan, Beijing Gas Group Company and Tangshan Gas General Company carried out a joint restructuring to provide Tangshan residents with more stable and cleaner gas supply. Under the relevant agreements, the Tangshan Municipal Party Committee and the municipal authorities required the company to deliver gas to residents’ homes by July 28th (Tangshan’s Victory in Earthquake Resistance Day), so that it could become the main source of gas supply in Tangshan. “The ’7.28 Project’, as an important initiative to commemorate the 30th anniversary of the Tangshan earthquake, is not only a serious political task but also a significant event in the history of the development of Tangshan Jiahua Company. The company carried out thorough and meticulous preparatory work for this. On April 3, the task of carrying out the construction drawing design was officially entrusted to Jiaonai Institute, and that same afternoon, staff were sent to stay at the institute to urge the delivery of the drawings. All pile foundation work was completed on May 5, in full accordance with the network plan. The construction of the civil structure can be completed by the end of June. The installation of indoor compressor systems has begun. All operators are in place for production preparation, and a one-month training program is currently underway ； Material preparation is proceeding as planned, and the construction plan is being finalized at full speed. Next, Jiahua Company will expedite the delivery and installation of the equipment to ensure that the project is completed on schedule.