He told Beijing Review that the local government took the tack of "buying new houses with old ones," which means that residents can finance their new houses with their old ones.

Those families who move into the new village are eligible for many kinds of subsidies. For example, miners can receive 6,000-7,000 yuan ($878.48-1,024.89) yearly per person.

To help farmers and herdsmen find work after moving into the new village, the local government is trying to develop other industries, like catering services, countryside tourism and transportation, Wang said.

"The local government has taken many measures to slow down the exploitation of coal. The new village will be safe and farmers and herdsmen do not have to move to any other places," said Wang.

Industrial transformation

Since the early part of this decade, the local government has gradually realized that economic development based purely on extracting resources is unsustainable. It proposed a new development strategy to achieve industrial transformation.

The government put the industrial upgrading strategy into its agenda in 2005, said Chen Xi, the information officer of the Ordos Municipal Government. In 2008, the global financial crisis began to create not only a challenge but also an opportunity for the strategy's implementation.

"In 2008, the coal industry accounted for 49 percent of the total government taxes of Ordos. That proportion will decline to less than 10 percent in 2010," said Chen.

In 2000, Chen said, the local government shut down small coalmines producing less than 300,000 tons annually. The number of coalmines was reduced to about 1,900 and yearly output dropped to 20 million tons. In 2007, the government shut down coalmines producing less than 600,000 tons annually. The number of operational mines was again reduced to 276.

"Industrial upgrading is necessary for a resource-based city to further develop. We must implement the strategy in advance to prevent the coming of harsher consequences," said Du Zi, Secretary of the Ordos Municipal Committee of the Communist Party of China.

The coal industry is a pillar of the community in Ordos. In the past, most coal was sold to other places. Today, in the interest of reducing exploitation, it is always processed into coal natural gas and methyl alcohol in local plants instead of being transported to other places. The government has also been encouraging the development of related industries, such as coal equipment manufacturing and maintenance businesses.

In 2008, Ejin Horo Banner planned to build an industrial park for equipment manufacturing, mainly focused on modern coalmining, coal chemical, mining electrical and hi-tech equipment manufacturing. The total planned area of the base, scheduled to be completed by 2012, is 20 square km. Officials expect to invest 10 billion yuan ($1.46 billion). The base is expected to attract 33 enterprises, while five have already settled there and brought 100 million yuan ($14.64 million) in investment.

"The base will be able to provide more than 8,000 new jobs and indirectly stimulate the employment of 40,000 persons after it is completed," said Gao Jianxin, Vice Director of the industrial park's management committee.

Shendong Tianlong Group Co. Ltd. is one of the five enterprises, mainly manufacturing and repairing mining machinery and accessories. The project's total investment is 1.2 billion yuan ($175.7 million), of which it had put in 600 million yuan ($87.85 million) by the end of 2008.

According to Gao Pengcheng, an operation manager with the company, the output value of its equipment maintenance business reached 20 million-30 million yuan ($2.93 million-4.39 million) 10 months after opening in April 2008 and the value is predicted to reach 45 million yuan ($6.59 million) in 2009.

Cultural resources

Ordos has a long history and rich cultural resources, such as the Ordos Wedding and Sacrificial Rite for the Mongolian Emperor Genghis Khan, which have been included in the List of Chinese Intangible Cultural Heritage. More than 1,000 different kinds of ancient cultural relics from different historical periods have so far been found around Ordos.

Kangbashi New Area is a new urban area of Ordos. Its construction began in May 2004 and on July 31, 2006, the government of Ordos was moved there. According to plans, Kangbashi New Area will be the administrative, financial and cultural center of Ordos.

In 2008, the government of Ordos put in 7 billion yuan ($1.02 billion) to build seven cultural projects in Kangbashi New Area, including sports and press centers, a theater, a library and a museum, said Xie Dongping, Vice Director of the Municipal Bureau of Culture of Ordos.

The 10th Asian Arts Festival will be held in Ordos on August 18-26, 2009. According to Xie, the city will also host a series of exhibitions during the festival, such as an exhibition for the intangible cultural heritage of Chinese ethnic minorities, another for bronze wares in the history of Ordos and an exhibition of Chinese tourist products.

Besides large cultural construction projects, the government will also build cultural salons and libraries in both rural areas and city residential communities, Xie said. At the same time, the government also plans to build some cultural brands, such as the Genghis Khan Mausoleum and the Ordos Ethnic Wedding Musical Drama.