Bitcoin mine illegally set up a special clean-up in Kangding City on the Dadu River

Bitcoin “mines” illegally built on the Dadu River

Kangding City multi-department set up a working group to carry out special clean-up

The mine yard on the Dadu River is only a few meters away from the river. Huaxi Dushi Bao – cover journalist Tian Xueyu Chen Yuanyang photo report

Player secret

“Mining” consumes a large number of power mines to see the direct power supply of the power station

On May 28th, Bitcoin climbed $8,903 (about RMB 61,000), another new high since 2019.

Senior "mining" player Xiaowu (a pseudonym) said that although he does not speculate on bitcoin, as a person with thousands of "mineral machines", he is very concerned about the bitcoin market. Beginning on April 30 this year, Bitcoin opened up the market, rising from more than 5,000 US dollars, and continuously broke through the 6000, 7000, and 8000 US dollars in less than a month, and once approached 9,000 US dollars.

“This makes more and more people 'mining'.” Xiaowu said that although China closed the bitcoin trading platform and identified it as an illegal transaction, the attitude of “boring” for Bitcoin is not clear. Because of this, 70% of the world's Bitcoin is produced in China, while 70% of China's “minerals” are in Sichuan, especially in the Dadu River Basin where water and electricity are abundant.

Because Bitcoin “mining” requires a lot of power, China’s bitcoin “mines” are often located in remote, developed areas with low electricity costs, such as Xinjiang, Yunnan, Inner Mongolia, and Sichuan. One of the words circulating in the industry is that Sichuan has become the natural “mineral capital” of Bitcoin.

Xiaowu said that miners can dig up to ten bitcoins a day. Even if the income from mining is extremely high, nearly 50% of the proceeds will be used to pay for electricity, so the mine has a direct view of the direct power supply of the power station.

Xiaowu revealed that because the direct power supply of the power station does not need to be integrated into the national power grid, the cost is very low. Many mines are directly built in or near the power station, and they build their own substation, “going down the national highway and going down the national highway. The provincial road is on the provincial road, and the mine is built in such a deep mountain."

"Because it is bitcoin mining, the factory can not be established, there is no environmental assessment and newspaper construction, suspected of illegal construction, power station direct sales of electricity is also against the electricity law." Xiaowu said that this is the current status of most "mines", " The mine is closer to the power station and the more it saves money.

Reporter survey

The factory is built on the Dadu River and the mining machines are transported here.

On May 28th, Huaxi Dushi Bao and cover journalists went to the watershed of Kangding City, Gandu Prefecture, Dadu River, and went to the town of Danba County in the direction of Danba County. Jinkang Hydropower Station, a subsidiary of China Datang, set up a black steel frame on both sides. Wu looked at it and decided that it was a "mine."

The doormen of Jinkang Hydropower Station introduced that these are indeed “mining” factories. They were built in 2017 and put into use in 2018. They are operated independently of the power station. “The factory is repaired by the company outside, and the land is their own level. ""

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 space of the power station, and the transformer unit separated from the power station is connected to the plant.

Entering from the Changheba Power Station tunnel behind the Jinkang Power Station, there are four 3-storey buildings on the riverside. The security guard who kept the entrance to the tunnel introduced that the factory here has started “mining”, and the person who guards the factory can take in the “customer” outside to visit.

Entering the factory building, the water mist from the power station's power generation came in, and the staff joked: "This is natural cooling water."

On the wall of the building in the “Minefield”, there are a large fan running at high speed. The fan in front of the factory is equipped with a dense mining machine. Before some vacant seats, many workers are busy installing the machine.

According to the staff, the factory was built by the enterprises of Zhuzhou, Hunan. There are more than 30,000 mining machines in the factory, all of which are filled with more than 50,000. "We only accept models of S9 and above, and the price of electricity talks with the company's responsible person. ”

Xiaowu said that the S9 mining machine is a relatively new mining machine, characterized by faster computing speed. According to the staff, the “mine” consumes more than 500 million kWh of electricity a year. “According to the industry, the electricity price should be around 8 cents and 8 cents, not higher than 3 cents.”

According to the staff, the mining machines here are from all over the country, mostly in Sichuan, Hunan, Jiangsu, Shenzhen and other places. The owners have their own mining machines in the “mines”, they pay the electricity, plane fees, deposits, etc. Just waiting for the coin.

“In the wet season, the mining machine will return to Sichuan one after another.” Xiaowu said that “mining” is like migratory birds, moving to Inner Mongolia and Xinjiang in winter and returning to Sichuan and Yunnan with lower electricity prices in summer.

A “mine owner” revealed that because the power supply agreement with the power station was slower, the construction of the factory could not go through the EIA and newspaper construction procedures. “This is very common in the Dadu River Basin. After repairing, I will try to make up the procedures.”

Department response

There is indeed a violation of the rules to set up a working group to conduct a mapping

Regarding the phenomenon of the Jinkang Hydropower Station, the reporter asked the Kangding City Ecological Environment Bureau for verification. The relevant person in charge of the law enforcement brigade of the bureau said that the Jinkang Hydropower Station had a related EIA filing.

It is reported that the Jinkang Hydropower Station was built more than 20 years ago and the plant was built in 2017. Do you need to re-evaluate? The person in charge explained that the factory has been completed and the illegal construction should be supervised by the housing and construction department. "We only supervise their illegal activities. They do not have illegal activities such as discharging sewage and discharging waste into the river. We cannot investigate it."

Subsequently, the relevant person in charge of the Housing and Construction Bureau of Kangding City stated that their scope of supervision is the construction land within the plan, and the competent department of the hydropower station is the National Development and Reform Commission.

The staff of the Kangding Municipal Development and Reform Commission Office responded that they only approved and supervised the projects under construction. "We have not received any approval for the Bitcoin 'mining' project. All hydropower stations in our jurisdiction are currently not under construction. If it is illegal Construction is regulated by the national department."

The relevant person in charge of the Land and Resources Bureau of Kangding City said that it has received some reports from townships and towns. It is indeed suspected of illegally setting up a bitcoin “mining” factory. At present, the working group has been set up by the Economic and Information Bureau. Afterwards, it will be dealt with. "If there are legal procedures within the scope of approved land for power stations, and the power station is leased, it is necessary to approve the use of the project; if it is outside the scope of planning, it is unapproved and must be disposed of."

"At present, the whole situation is still unable to explain." The above-mentioned person in charge said that the working group led by the letter bureau is still investigating, including whether the power station illegally sells electricity.

On May 28, the relevant person in charge of the Kangding City Economic and Trade Bureau said that Ganzi Prefecture does not allow bitcoin to “mining”. They have not received the record of related projects at present. “If there is bitcoin in the investment promotion, it is not allowed. For data projects, we also need to conduct data surveys and then make decisions."

Source: Huaxi Dushi Bao

Reporter Tian Xueyu Chen Yuanyang

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