The government of northwestern China's Shaanxi province on March 21 sold seven coal mining licenses at an auction for blocks in Shenmu city, another move for the coal-rich province to expand production for national energy stabilization.
The auction attracted attendance of 124 companies, with the combined starting prices of 6.21 billion yuan. After 8 hours of intense bidding, the licenses were finally sold at 39.65 billion yuan, with an overall premium rate of 538.93%.
This brought in a total of 7.9 billion yuan for the local fiscal revenue in the first quarter, calculated in the 20% down payment ratio.
By far, the government has sold 15 coal mining licenses through auction.
Shaanxi province, the third largest coal base in China, produced 746.05 million tonnes in 2022, up 5.4% from a year earlier. The province plans to raise its coal production to 750 million tonnes in 2023, according to the government work report for 2022.
(Writing by Alex Guo Editing by Emma Yang)
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