Dongtan Coal Mineis located in the central eastern portion of Yanzhou coalfield, with coalfield area of approximately 60.0 square kilometers.Dongtan began commercial production in 1989 with a designed annual raw coal production capacity of 4.0 million tonnes. Certainsections of the main coal seam consist of one layer with an average thickness of 8.41 meters, and the remaining sections are dividedinto two layers, with an average thickness of 5.38 meters for the upper layer and 3.22 meters for the lower layer. As of December 31,2013, the main coal layer held approximately 429.6 million tonnes of in-place proven and probable reserves.
Dongtan Coal Mine primarily uses the longwall top coal caving method to extract coal. At this mine, we maintained two work faces as ofDecember 31, 2013. The Dongtan coal preparation plant produces No. 2 Clean Coal, lump coal and thermal coal. The principal piecesof equipment in the Dongtan coal preparation plant, including its dense media slanted wheel, cyclones and jig machines, were manufactured in thePRC.