Private company gains access to railway project

Industry Investment Group - one of the biggest private companies in Northwest China's Xinjiang Uygur autonomous region - has gained access to a railway construction project in the remote but resource-rich region.

Construction of a 624-kilometer coal transport line, partially funded by the company, has started in late March, and is expected to start operations by the end of 2013.

Upon its completion, coal mines in the Naomaohu area of eastern Xinjiang's Hami prefecture, will provide a steady supply of coal to neighboringGansuprovince, and then other parts ofChina.

"This is the first railway in Xinjiang with an investment from a private company," said Shang Jiqiang, the group executive director.

Shang said long-distance transport has been an obstacle for coal exploration in Xinjiang for a long time. The region is rich in energy resources, including coal, crude oil and natural gas.

The Naomaohu Coalfield, located 70 kmnorth from Yiwu county, Hami prefecture, has thick, but shallow-buried coal seam, and high quality coal. The coal resources amount that are above1,000 munderground exceed 22.3 billion metric tons, and one third of its coal resources are in open-pits.