Fushun Mining Group
| Company type | State-owned enterprise |
|---|---|
| Industry | Coal mining, Oil shale processing |
| Headquarters | Fushun , China |
Key people | Li Qing (Chairman) |
| Products | Coal, Shale oil |
Number of employees | 28000 |
Fushun Mining Group (, FMG) is a prominent state-owned enterprise specializing in coal and oil shale industries, headquartered in Fushun, Liaoning Province, China. The conglomerate encompasses roughly 30 affiliated companies and employs close to 28,000 individuals. FMG's primary activities focus on coal mining and oil shale processing, establishing it as one of the foremost global producers of shale oil.
History
After Japan defeated Imperial Russia and the Treaty of Portsmouth was signed, control over the South Manchuria section of the China Far East Railway was transferred to Japan. The South Manchuria Railway Company expanded rail infrastructure and developed coal mines in Fushun, turning the region into an industrial center over a span of three decades. Post-World War II, in 1946, the Fushun Coal Mine came under the administration of the Kuomintang, which created the Fushun Mining Administration Bureau. By 1948, authority shifted to the Communist Party of China, positioning Fushun as a vital industrial hub for the People's Republic of China.
Operations
FMG's network of approximately 30 subsidiaries employs nearly 28,000 personnel. The bulk of its earnings originate from the Laohutai Coal Mine, West Open Pit, East Open Pit, and its Oil Shale Plant. Other divisions—including transportation, machinery manufacturing, and maintenance—reported financial losses according to FMG’s 2013 financial statements. Since 2002, FMG has sought to diversify beyond coal by making significant investments in shale oil retorting, paper manufacturing, and oil refining sectors.
Coal mining
Renowned as "the capital of coal," Fushun historically contained abundant coal deposits predominantly managed by FMG. The company operates three principal coal mines: Laohutai Coal Mine, West Open Pit, and East Open Pit. However, coal output has significantly decreased recently due to resource depletion. FMG declared intentions to cease operations at West Open Pit in 2019 and Laohutai Coal Mine by 2026. These mines yield premium blending coking coal and steam coal critical for steel production. Facing dwindling reserves, FMG is redirecting its strategic focus toward oil and paper industries, supported by multi-billion RMB funding from government banks. Moreover, FMG holds extensive coalbed methane reserves estimated at approximately 8.9 billion cubic meters. Despite these resources, shifting toward non-coal sectors introduces typical management complexities associated with state-owned enterprises.
Oil shale industry
Commercial oil shale retorting commenced at FMG in 1991. The company controls geological reserves estimated at about 3.5 billion tons of high-quality oil shale, with 920 million tons deemed recoverable—760 million tons located in East Open Pit and 160 million tons in West Open Pit. By 2008, FMG operated the world’s largest oil shale processing facility consisting of eleven retorting units housing a total of 220 Fushun-type retorts. This plant can process up to 11 million tons of oil shale annually, producing roughly 330,000 tons of shale oil.
To handle finer particle-size oil shale unsuitable for conventional retorts, FMG is developing a 250-ton-per-hour Alberta Taciuk Processor (ATP), designed by Polysius AG (ThyssenKrupp) utilizing UMATAC Industrial Processes technology. The ATP project has experienced delays exceeding eight years. Since September 2012, Australian company Procom—specialized in ATP commissioning—has been assisting FMG. In August 2013, the ATP facility achieved its initial production of shale oil; however, maintaining continuous operation remains a challenge.
Management board
The current chairman of FMG is Li Qing, who previously served as the deputy director of Liaoning Coal Mining Administration. Although retired since 2012, former chairman Yin Liang still maintains considerable sway within the organization.