Coal giant blamed for water shortage

A State-owned company is accused of overexploiting groundwater in the Inner Mongolia Autonomous Region over the last eight years, causing severe desertification and water shortages, according to a Greenpeace report released Tuesday.

The report pointed out that the coal-to-liquid project of the Beijing-based Shenhua Group, the world's biggest coal distributor, has exploited more than 50 million tons of groundwater in Ordos in Inner Mongolia, causing local groundwater levels to fall by nearly 100 meters.

Meanwhile, grasslands have experienced severe desertification, affecting the lives of nearly 6,000 herdsmen and farmers.

Shenhua claims the project has low water consumption and zero discharge. However, the investigation disproves those claims, Greenpeace campaigner Deng Ping said.

An unnamed press officer at Shenhua told the Global Times the group has started their own investigation. "The report has put a lot of pressure on us. If there are problems, we will solve them, but if there are not, we will clarify this for the public," she said.

The press officer denied that water exploitation caused its levels to fall by 100 meters, adding that their project has considered environmental factors. She also claimed that Shenhua has not received any complaints.

Greenpeace said that during 11 onsite investigations they also found the group secretly discharged water with pollutants exceeding legal standards. The water samples contained 99 toxic chemical compounds.

Some State-owned enterprises in Ordos have caused ground water pollution and serious diseases among local residents and animals, Zhao Zhangyuan, a researcher with the Chinese Research Academy of Environmental Sciences researcher, told the Global Times, stressing that such enterprises should be punished severely.

China is building 14 large coal production bases, many of which are located in water-short Northwest China, the Guangzhou-based 21st Century Business Herald reported.

"If the group doesn't stop its damage, this will be copied by others," Deng said.