Dongshan in Taiyuan in Shanxi province has been awarded 260 million yuan ($41.3 million) in its further development given by Shanxi Jianfeng Industry Group Co Ltd.

The company plans to develop organic agriculture, ecological forestry, affordable housing and other projects in this area in order to create more economic benefits and help the villagers improve the quality of their life, the chairman of the company Hao Jianxiu said.

Dongshan area is being developed in Taiyuan, Shanxi province. [Photo/chinadaily.com.cn]

“Dongshan project is also designed to help the area achieve green and sustainable development, bring about equal public services for rural and urban people and realize our company’s ideal of paying back the community and benefiting our offspring,” Hao said.

As of now, the company has already invested 250 million yuan in the project and become the largest heavy mechanical engineering enterprise.

Dongshan Mountain, as Taiyuan's east ecological barrier, has been seriously destroyed from excessive mining and soil erosion. In addition, a large area of land available has not been developed, which seriously restricts the harmonious development between the economy and the ecological construction of Xinhualing district in the city.

The Dongshan development project, as an important project, will increase the green areas to enhance the area's ecosystem functions for future's ecological tourism and urban leisure culture industry in this area.

Hao Jianxiu (C), chairman of Shanxi Jianfeng Industry Group Co Ltd receives interview at the construction site in Dongshan area in Taiyuan, Shanxi province. [Photo/chinadaily.com.cn]

"To speed up the economic transformation of resources in Shanxi province is necessary to ensure the country's energy security and the vital measures to promote coordinated development of this area, also the fundamental way for Shanxi to realize scientific development," Hao said.

Shanxi, as a coal-rich province and the nation’s important energy and raw material supply base, has made great contribution to the country’s sustainable development during the past decades.

But for the long-term and high-intensity coal exploitation, Shanxi is now facing many problems such as unsustainable industrial structure, resource exhaustion as well as ecological resource destruction.

In 2010, China's top economic planning body approved the establishment of a "pilot economic transformation zone" in Shanxi province to diversify the region's resource-based economy and to help Shanxi achieve green and sustainable development.