A giant coalfield with a proven reserve of 500 million tons has been found in northern China's Inner Mongolia Autonomous Region.

Seismographic and geological data showed that there is a 20-km-long and 5-km-wide coal seam covering more than 100 square km in the area of Otog Banner.

An exploitation project with a designed yearly output of 250,000 tons is under construction there, with an investment of 18 million yuan (US$2.1 million) from the local Xinyuan Coal Exploitation Co. Ltd.

Besides this project, which is scheduled for completion in August this year, the local government plans to increase its totalcoal output each year to 20 million tons, with a production value of 1 billion yuan (US$120 million) by 2005.

Meanwhile, the local government preparing to set up more thermal power stations.

(Xinhua News Agency February 6, 2004)