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China Coal Shaanxi plans to invest 23.8 billion yuan in the Yulin coal deep-processing project, which will involve the production of 2.2 million tons of methanol and 900,000 tons of polyolefins. On April 27, China Coal Energy announced that, in line with its development strategy of improving efficiency within existing operations while pursuing transformation in new areas, and in order to further develop its coal industry chain, promote the clean and efficient utilization of coal, and facilitate adjustments in the structure of industries and products, its wholly-owned subsidiary, China Coal Shaanxi Company, intends to invest in the construction of this coal deep-processing facility in Yulin. The total investment in this project is 238,881.321 million RMB. The project is designed to produce 2.2 million tons of methanol per year and 900,000 tons of polyolefins per year; it will include one EVA plant and three polyolefin plants to manufacture a range of high-end polyolefin products. The total estimated duration for this project is 30 months. Based on the financial evaluation results, it is estimated that the pre-tax internal rate of return on the total investment for this project is 10.60%, while the after-tax internal rate of return on equity is 14.88%. This project is in line with the company’s development strategy of improving efficiency within existing operations and pursuing transformation through new initiatives. It represents a significant step forward in expanding the coal industry chain, and it helps to promote the clean and efficient conversion of coal as well as the development of high-quality, differentiated coal chemical products. It also enables full utilization of the advantages associated with regional integration, thereby continuously enhancing the value creation potential of the coal industry chain. In June 2022, the project received the approval document issued by the Ministry of Ecology and Environment of the People’s Republic of China, titled \"Approval on the Environmental Impact Assessment Report for the China Coal Yulin Coal Deep Processing Base Project\" (Document No. Huan Shen 75). In January 2023, the project obtained the approval from the Shaanxi Provincial Development and Reform Commission, documented as \"Approval by the Shaanxi Provincial Development and Reform Commission for the China Coal Yulin Coal Deep Processing Base Project\" (Document No. Shan Fa Gai Neng Chan Ye 135). To date, 10 out of the 14 preliminary approval documents required for this project have been completed, while the remaining 4 procedures, including safety pre-assessment, energy efficiency evaluation, water resource assessment, and soil and water conservation assessments, are currently in progress.