Bloomberg reported that Shenhua Group Corp, China's largest coal producer, won government approval to develop a mine with reserves that are more than sufficient for one year of the nation's demand.

The State owned Assets Supervision and Administration Commission said in a statement that the Tarangaole mine in northern China's Inner Mongolia has about 3 billion tonnes of proven coal reserves and an estimated lifespan of more than 95 years. It has an annual capacity of 10 million tonnes.

Mr Zhang Wenjiang assistant general manager of the Beijing-based company said that “This is a large-scale mine. The coal's quality is good with low sulfur, low phosphorus and high calorific value. He said that Shenhua Group, the parent of China Shenhua Energy Co will need 18 to 20 months to start producing coal at the mine. He is unsure' if the mine that will boost the group's annual production by 4.3% will be injected into Shenhua Energy.”

Mr Zhang said restrictions on transporting hazardous materials, including explosives, near Olympic venues have disrupted coal production. Some small mines in Shanxi, the nation's biggest coal producing province, have had to halt blasting on July 17th. He said that Shenhua Group wasn't affected because it doesn't rely on explosives to extract coal.

The Beijing based assets commission said the project was approved by the National Development and Reform Commission. Shenhua Group produced 235 million tons of the fuel in 2007.