Ling Wen, deputy manager of Shenhua Group, said the company will spend RMB135.8bn ($21.4bn)on the project in the Jungar coal mining area in Ordos, Inner Mongolia.
The project includes a 6600MW power plant, an alumina plant and a gallium plant. All of the plants will use materials recycled from coal burning.
The Jungar coal mine was chosen in October by the ministries of land resources and finance to become the country's first coal mine to use recycled mineral resources.
Shenhua estimates that Ordos, which is home to a sixth of the country's coal reserves, has the resources to produce 3bnt of alumina.