Interfax China Business News reported last week that Shaanxi Provincial Coalfield Geology Bureau signed a Geological Appraisal Agreement with Anglo Coal to collaborate on appraisal at the Xiwan Coalfield.
Interfax reported that the geological appraisal work will focus on feasibility studies and the economic returns on the project, which aims to construct the world's largest open coalmine with annual coal output of 30Mt – 40Mt.
Fan Limin, vice general engineer in the technology department of the Shaanxi company, told Interfax the next stage would be the formation of a 'joint prospecting agreement' to jointly implement the exploration work for Xiwan Coalfield. According to Fan, both of the companies are confident about the prospects of reaching the next stage.
Anglo Coal will reportedly undertake all the expenditure during the geological appraisal stage. Exploration is estimated to cost around $US100 million.
