Wang Wenbiao, chairman of Elion Resources Group Co, gives a speech on the Kerqin sandy land project signing ceremony on Jan 25, 2011, in Beijing.[Photo / chinadaily.com.cn]

Even at a time when green projects are promising for businesses, it is still rare for a company to invest its money in a desert.

But that is what Elion Resources Group Co, a company focused on energy resources, chemical industry, pharmaceutical industry and eco-tourism, has been doing for a long time. Now the company is going to further expand its efforts in the eco-development of desert regions.

Elion Resources has signed an agreement to partner with Tongliao of the Inner Mongolia autonomous region in developing an ecological economy in the Kerqin region. The signing ceremony was held on Tuesday in Beijing.

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The semi-arid Kerqin sandy land, located in the east part of Inner Mongolia and covering an area of 42,300 square kilometers, is the largest of China's four major sandy lands. Kerqin, once a beautiful grassland region, now poses a threat to the ecological environment for Northeast and North China.

Elion Resources is going to improve the ecological environment of Kerqin and help hundreds of thousands herdsman in that area to earn more money. The company's strategy includes developing new energy, promoting desert eco-tourism and developing an ecological economy, according to Wang Wenbiao, chairman of Elion Resources.

Elion Resources has rich experience in improving the conditions of deserts. It began the eco-development of the Kubuqi desert 22 years ago and achieved significant results. The company was awarded "China's pilot base for desertification prevention and control" by the State Forestry Administration for its work in the Kubuqi desert, the first such pilot base in China.

The awarding of the pilot base was also a part of Tuesday's signing ceremony. Zhu Lieke, the vice-administrator of the State Forestry Administration, attended the ceremony.

Zhu said China has attached great importance to combating desertification, but the capital gap is still very large. The government is encouraging more enterprises to get involved in desertification prevention and control, Zhu said.