China is planning to construct a new port terminal in Huludao, Liaoning Province, to increase its coal exports, according to the Chinese port authority.

Huludao City chief of port affairs Zhao Rongqing said the port terminal would support an annual throughput of 50 million tons of coal when the first phase of the project becomes operational by 2012.

The annual throughput would eventually be expanded to 230 million tons, Rongqing said.

The project also includes a 300km railway line to link the port directly with Xilingol, a major coal production base in Inner Mongolia Autonomous Region.

Inner Mongolia’s coal deposit of 732 billion tons is higher than the 250 billion tons in Shanxi Province, which is currently China’s biggest coal producer.