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In the context of global energy transformation, coal is gradually losing its dominance as oil reserves become more constrained. The development and application of new energy sources have become a top priority. In the 2013 government work report, Wen Jiabao emphasized the need to promote economic restructuring, accelerate industrial adjustment, and balance growth with resource availability. As the world moves into a new phase, traditional energy bases must also undergo significant upgrades and transformations. To explore this topic, we recently spoke with Li Zhengyin, mayor of Shengzhou City in Shanxi Province.
Reporter: How would you describe Shengzhou?
Li Zhengyin: Located in northern Shanxi, Shengzhou has a rich historical heritage, dating back to the Qin Dynasty when it was known as Maju County. It is home to six national-level cultural relics sites. Moreover, Shengzhou grew alongside China’s reform and opening-up policy. In 1979, Deng Xiaoping met with the U.S. Western Petroleum Corporation during his visit to the U.S., leading to the establishment of a large Sino-foreign joint venture for open-pit coal mining. This marked the beginning of foreign investment, technology, and management practices in China's energy sector.
Reporter: Shengzhou is known for its heavy chemical industry centered around coal-fired power. What are the key features of its industrial structure?
Li Zhengyin: Shengzhou has several key industries: coal, electricity, dairy, and ceramics. However, the current model is unsustainable. The city needs to shift toward an integrated energy base, a new industrial base, a breeding center, and a tourism and cultural industry hub.
Reporter: Given the deep-water zone of economic transformation, do you think Shengzhou is not yet at the stage of transformation?
Li Zhengyin: On the contrary, Shengzhou now has a great opportunity for transformation. In 2010, the State Council designated Shanxi as a resource-based area for reform trials. This provides a platform for Shengzhou, one of Shanxi’s largest coal producers, to break free from the "resource curse" that has affected other cities. We must prepare for transition before coal resources are exhausted.
Reporter: How is Shengzhou promoting industrial transformation?
Li Zhengyin: First, we are upgrading traditional industries. With over 4.2 billion tons of proven coal reserves, Shengzhou remains crucial for China’s modernization. But the coal industry must evolve. Over the past few years, the number of local coal mines dropped from 134 to 66, and the number of main mine operators decreased from 119 to 27. Production capacity per mine increased from 450,000 to over 1.2 million tons annually, with full mechanization. Recovery rates have jumped from 10–20% to over 70%.
Second, we are developing a circular economy. Every year, 40 million tons of coal gangue and hundreds of millions of tons of fly ash are generated. These waste materials pollute the environment and occupy land. Therefore, we are focusing on ecological civilization, promoting new industries like renewable energy, new materials, and environmental protection, to balance resource-based and non-resource-based sectors.
Reporter: You mentioned that coal-fired power plants cause serious pollution. How do you turn waste into value?
Li Zhengyin: Land use is a major constraint. To address this, we implemented reforms in land use, including reusing abandoned mining areas and integrating urban-rural land planning. Financial support has also been strengthened, with commercial banks collaborating closely. Shengzhou is a pilot for capital market reforms, nurturing key enterprises for listing. Last year, 80% of new deposits came from the city, showing the financial sector’s role in driving growth. Additionally, we focus on technological and talent innovation through the “three hundred†project, which includes bringing in 100 talents, connecting with 100 universities, and hiring 100 experts.
Reporter: How does Shengzhou protect the environment during transformation?
Li Zhengyin: Historically, the ecological situation in Shengzhou was weak. However, after 60 years of effort, the forest coverage in Youyu County rose from 0.3% to 53%, inspiring the "Youyu Spirit." Following provincial guidance, we are promoting ecological protection and planting 330,000 mu of trees each year. We also restored river ecosystems and used eco-compensation funds to plant trees in exchange for coal production. Social forces and market mechanisms are being mobilized to achieve green development.
To support these efforts, we streamlined administrative approvals, reducing over 190 items and centralizing the remaining ones at the Administrative Service Center. A green channel was created for major projects to speed up approval processes and improve efficiency.
In summary, Shengzhou is undergoing transformation in ecological restoration, urban-rural integration, and people’s livelihoods. Achieving these goals requires strong commitment and continuous effort.