(By Zhang Xiaojie and Meng Lingling) Kingho Group Xinjiang Hefeng Energy Chemical Co., Ltd. and Kingho Group Hefeng Oil Sand Mining Co., Ltd. settled in Hefeng Industrial Park (Autonomous Region-level) 2012, and both of them are wholly-owned subsidiaries of China Kingho Energy Group Co., Ltd.

For 2013, Kingho Group Hefeng Project Department estimated a total investment of nearly RMB 1.4 billion, in which RMB 0.86 billion is for resource prospection; RMB 0.425 billion for construction of infrastructure and main roads of the factory, and RMB 0.1 billion for the 50,000-ton oil sand (coal) dry distillation project. A set of new-built 50,000 ton/year oil sand (coal) dry distillation unit is planned for 2013, which after completion will able to process 50,000 tons of oil sand annually, and is expected to realize an annual sales revenue of RMB 26,692,600 and an annual profit of RMB 5,788,800. As the construction cycle is long, equipment investment is heavy and input deduction is great, it is hard to realize tax revenue in the short term.

Now the feasibility study report for the project has been prepared, and the environment assessment report and safety assessment report are being prepared. The project was commenced in Apr. 2013, and is expected to be put into trial operation in Oct. this year.