First Phase of Energy Chemical Base Starts Production      

On October 28th, 2007 the first phase of Yili Energy Chemical Cycle Economy Industrial Base was completed and went on stream in Dalate, Inner Mongolia.
   The total investment of the base is planned to be RMB30 billion. The first phase has an investment of RMB13 billion.    
   The construction of the first phase was started in April 2005. It mainly includes a coal mine and a power plant jointly invested by Inner Mongolia Yili Resources Group Co., Ltd. (Yili Resources) and Shenhua Group, a 400 000 t/a PVC and 400 000 t/a ion membrane caustic soda project jointly funded by Yili Resources, Shanghai Huayi Group and Shenhua Group, and the 1.2 million t/a residue based cement project jointly invested by Yili Resources and Hebei Jidong Cement Group Co., Ltd.
   The Base has formed an integrated cycle industrial chain from coal, coal gangue to power, salt, ion membrane caustic soda and PVC to residue based cement.
   Besides, Inner Mongolia Yili Science and Technology Industry Co., Ltd. (SH: 600277) recently announced that it would issue up to 460 million domestic shares to its majority shareholder Yili Resources at a price of RMB11.16 per share, and buy a 41% equity in Inner Mongolia Yili Chemical Industry Co., Ltd., a 49% equity in Shenhua Yili Energy Co., Ltd. and a 41% equity in Inner Mongolia Yili Jidong Cement Co., Ltd., all acquisitions held by Yili Resources. (CCR 2007, No.28)