Baodian Coal Mineis located in the central western portion of Yanzhou coalfield, with coalfield area of approximately 37.0 square kilometers.BaodianCoal Mine began commercial production in 1986 with a designed annual raw coal production capacity of 3.0 million tonnes. Certainsections of the main coal seam of Baodian are concentrated in one leaf, with an average thickness of 8.81 meters. The remainingsections are divided into two leaves with an average thickness of 5.74 meters for the upper leaf and 3.38 meters for the lower leaf. Asof December 31, 2013, the total in-place proven and probable reserves on the main coal layer were approximately 263.3 milliontonnes.

Baodian Coal Mineprimarily uses the longwall top coal caving method to extract coal. At this coal mine, we maintained two work facesas of December 31, 2013. The majority of equipmentin the Baodian coal preparation plant, including its dense media slanted wheel, cyclones and jig machines, which were manufactured in the PRC.