China’s thriving regions - Nei Mengu Nei Mengu: HIGHLIGHTS:
‹ Inner Mongolia has replaced Shanxi province as the country’s largest producer of coal.
‹ Erdos is hailed as the centre of Chinese Cashmere Industry, with one third of China’s total cashmere products.
‹ Huhhot, the capital city, is recognized as the centre of China’s Dairy Industry.
‹ The rare earth reserves in the Baiyunebo area account for 97 per cent of the nation’s total.
Nei Mengu (Inner Mongolia) has the largest area of grasslands and forests in China, which contributes to the province’s booming livestock-breeding activities and production capacity in areas such as milk, mutton, fine wool and cashmere. Given Australia’s advantage in livestock husbandry and animal product processing, the Nei Mengu government and local companies have sought to explore cooperative opportunities. In September 2010, the Nei Mengu government invested almost A$3.1M to import 1284 rams from Australia to improve the quality of its sheep breed in the region. In September 2007, an Australia-based company, Sun Tech Environmental Group Ltd., invested over $35m into Nei Mengu’s Niumama Dairy to establish the joint venture Happy Mumu in the city of Ulanqab. Its sales went up dramatically during the 2008 melamine-tainted milk scandal in China thanks to its safe quality and good reputation.
Nei Mengu covers 12 per cent of China’s total territory and abounds with oil, natural gas, rare earth elements, coal and iron ore mine. It has China’s largest iron ore mine at Baiyunebo and its reserves of rare-earth minerals account for 90 per cent of the nation’s total. Its coal output in 2009 was reported to reach 637 million tons, a 37 per cent year-on-year increase. In August 2008, Australian company Crest Mining announced an investment agreement with the Yihe Coal project, with a 17 per cent farm-in stake in the project, signified Australian involvement in the resources-rich autonomous region of China by providing its expertise to improve safety, efficiency and yields. Another company, Clean Global Energy (CGE), the world leader in clean energy solutions, has proposed a joint venture company for a commercial Syngas project worth over A$400m near Xilinhot, where the area is highly suitable for CGE’s unique CRIP (Controlled Retractable Injection Point) technology. Nei Mengu is one of China’s seven ‘wind bases’ and
its estimated wind power totals 150gW – almost half of China’s onshore wind power potential. In October 2010, CSR Corp., a railcar maker, signed an agreement with Tongliao City government to spend RMB$750m to build a wind turbine plant in Nei Mengu. However, Nei Mengu has had difficulties due to the lack of an advanced electric grid to transmit and distribute wind power beyond the region, and many wind farms have ceased production.
148 Australia China: BEYOND TOMORROW
ABOVE: Hohot Baita Airport.
Photos by (clockwise
from top) Bert van Dijk, J. Lau, Biture and Syuaqee Mohommad.
The opportunities and challenges faced by Nei Mengu may be a niche market for Australian companies, since South Australia and Victoria have a significant wind energy system. There has been a growing focus on the
complementary resources between Australia and Nei Mengu, and consequently more activities for information exchanges have been arranged. In November 2010, senior officials from Inner Mongolia and the Victoria government met to explore extensive bilateral cooperation. Events such as Inner Mongolia Culture Week and Inner Mongolia Business Week will now be held in Australia to expand cooperative areas. Nei Mengu shares an international border with Mongolia and the Russian Federation, which can be seen as a geographic advantage to boost international business with neighboring nations. The hospitality industry will also become more important as Nei Mengu expands its international market. The Australian-based Argyle Group has reached an agreement with Elion Resources Group at Erdos to build a business hotel, Ausotel Elion, which is located in Erdos’ CBD area and covers 280,924sqm together with a 62,700sqm business complex. Ausotel Elion provides an excellent lodging environment for business travelers from home and abroad and is expected to open for business in March 2011.
Fan Xiao-Pu
CHINA
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