On April 12, Hubei Province-based major Chinese steel producer Wuhan Iron and Steel Group (WISCO) announced that it has signed an agreement with coking coal company Tianze Coking Co.,Ltd, based in Ruzhou, Henan Province, for the purchase of a 20 percent stake in the company. The money invested by WISCO will be used by Tianze Coking to develop its Ruyang Jiding coal mine project in Henan, from which WISCO will receive at least 80 percent of coking coal produced.
According to WISCO sources, the development of the Ruyang Jinding coal mine will cost more than RMB 300 million (about $44 million) in the preliminary phase, with the mine output reaching 0.45-0.6 million mt annually. The mine in question has proven reserves of 70 million mt, with an average coal seam thickness of 6.65 m and maximum thickness of 15 m. Ruyang Jiding coal mine is expected to be a major source of coking coal supplies for WISCO and its subsidiary Egang Steel.