Shanghaimiao Energy and Chemistry Base is located in Shanghaimiao town, at the junctions of Inner Mongolia autonomous region and Ningxia Hui autonomous region. It is 25 kilometers from Yinchuan Hedong International Airport and close to Ningdong Energy and Chemical Industrial Base. The planning area is 1,800 square kilometers with proven coal reserves of 14.2 billion tons and planned coal reserves of 50 billion tons. Mainly developing coal-based economic industries, coal power forms the support system and the coal chemical industry takes the lead. Furthermore, the base invited top domestic planning and design teams to shape 31 projects including mining area, towns and industries, forming a scientific and complete planning system.

In October 2014, the energy and chemical industry park was identified as a national eco-industrial demonstration zone by the Ministry of Environmental Protection, Ministry of Science and Technology and Ministry of Commerce. The base obtained 6.29 billion yuan ($910.5 million) in fixed asset investments, a total industrial output value of 13.238 billion yuan, 1.63 billion yuan in industrial added value, 12.634 billion yuan through business income and 322 million yuan in financial revenue. 

The base introduced 17 powerful enterprises including China Tobacco, Shanxi Jincheng Anthracite Mining Group, Shenhua Group and China Star Optoelectronics Technology, and completed 40 billion yuan of investment comprising 26 billion yuan of industrial projects and 14 billion yuan of infrastructure projects. Currently, 4 coal mines have been built and 5 are being built, reaching a capacity of 36.6 million tons. Coking poly-generation projects have attained 2.6 million tons with liquefied natural gas reaching 200,000 tons, waste filling reaching 800,000 tons and coal cutter manufacturing and repairing capacity reaching 60,000 tons. The 10 million KW coal power project and its supporting power channels, together with a 4 billion cubic meter coal gas project, will be approved and begin construction. Moreover, the base has a complete infrastructure containing water, power and roads and has obtained the foundations necessary to undertake the settling of great industrial projects.