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Local Government to Demolish Illegal Mining Camp along a River in the West of China

Although China shut down the bitcoin trading platform and deemed it illegal, its attitude towards bitcoin’s “mining” is still ambiguous. Now 70% of the world’s bitcoins are produced in China, while 70% of China’s “stock” is in Sichuan, a western province of China, especially along the Dadu River, where there is plenty of hydropower.

As bitcoin’s “mining” requires a lot of electricity, China’s bitcoin’s mining camp is often located in remote areas with low electricity charges, such as Xinjiang, Yunnan, Inner Mongolia, Sichuan and other regions.As a saying goes: Sichuan is the natural “mining capital” of bitcoin.

Due to nearly 50% of the revenue is used to pay for electricity, so the miner turned to direct power supply from the power plant.

“The cost is very low for the direct power supply of the power station for it does not need to be integrated into the state grid. Many mines are built directly in or near the power station, and they build their own substations.”

Said by a senior miner, as a bitcoin mine, factory building can not be approved, nor environmental assessment and construction report. And the mine may be suspected of illegal construction, power plant direct sale also violates the electricity law.

The shortest factory building is on the Dadu River embankment, only a few meters away from the river surface. The newly built cement wall is isolated from the office building of the power station and connected with the transformer unit separated from the wall of the power station.


Entering the factory building, the water mist emitted from the power plant drifted in, and the staff jokingly said, “This is natural cooling water.”

The walls of the buildings in the “mine” are equipped with large fans running at high speed. In front of the fans in the workshop are dense mining machines. In front of some vacant machines, many workers are busy installing machines.

According to the staff, the mining machines here come from all over the country, mostly from Sichuan, Hunan, Jiangsu, Shenzhen and other regions. The owners keep their  mining machines in the “mine camp”. They pay the electricity fee, the deposit fee, and wait for the coins.

“During the flood season, the mining machines return to Sichuan one after another.” Xiaowu said, just like migratory birds, the mining machines migrate to Inner Mongolia and Xinjiang in winter, and return to Sichuan and Yunnan in summer, where electricity prices were lower.

A “mine owner” revealed that because of the slow signing of the power supply agreement with the power plant, building the plant can not get environment assessment and construction reporting in advance. “This is very common in the Dadu River basin.

“it is necessary to approve if there are legal procedures within the scope of approved land for power station leasing. it should be demolished if it is beyond the scope of planning.”

Municipal Bureau of Land and Resources said that they had known the illegal construction of the Bitcoin mining camp along Dadu River. At present, a working group led by the Credit and Economic Bureau has been set up, which is conducting a thorough investigation.


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