Workers get busy building a factory for Shanxi New Carbon Superhard Material Technology Co, engaged in producing diamonds from coalbed methane in Yangquan city. [Photo/Yangquan Daily]

Construction of Shanxi New Carbon Superhard Material Technology Co -- a joint venture of Yangquan Coal Industry Co and Taiyuan University of Technology -- is now in full swing in Kuangqu district in Yangquan city in North China's Shanxi province, according to local officials. 

Rich in coal-bed methane resources, Yangquan has been increasing the rational utilization and development of coalbed methane, as well as introducing and furthering coal-bed methane deep processing projects in recent years. 

The joint venture, which produces diamonds from coalbed methane, is one of the coal-bed methane deep processing projects and benchmarking projects in Yangquan city, officials said. 

It uses low-concentration coal-bed methane as a power energy source. It also uses methane and hydrogen purified and cracked from high-concentration coalbed methane as raw material gas and synthesizes high-value-added diamond products by means of advanced technologies.

The exhaust gas produced during the production process is recycled, according to the company. 

Zheng Aiwei, chairman of Shanxi New Carbon Superhard Material Technology Co, said that the joint venture will achieve efficient and comprehensive utilization of coalbed methane. 

It will manufacture products that are applied to processing tools, radar windows, heat dissipation components and semiconductor materials fields -- and promote the company's upgrade through industry-university-research institute cooperation.

With an estimated investment of 364.12 million yuan ($51.31 million), the venture will be developed in two phases.

The first phase includes the construction of a production line with 50 sets of diamond producing equipment which can produce 150,000 carats of diamonds annually. The second phase includes a production line with 100 sets of diamond producing equipment with annual diamond production capacity of 300,000 carats. 

Currently, the infrastructure and factories are under construction. The diamond production system, power supply and distribution system and circulating water support system are being prepared.