Xinglongzhuang Coal Mine is located in the northern portion of Yanzhou coalfield, with coalfield area of approximately 56.2 square kilometers.Xinglongzhuang Coal Mine began commercial production in 1981 with a designed annual raw coal production capacity of 3.0 million tonnes.The main coal seam of Xinglongzhuang is concentrated in one leaf with an average thickness of 8.3 meters. As of December 31,2013, the total in-place proven and probable reserves on the main coal layer were approximately 296.3 million tonnes.

Xinglongzhuang Coal Mine primarily usesthe longwall top coal caving method to extract coal. At this coal mine, we produced coal from two work faces as of December 31, 2013. The Xinglongzhuang coal preparationplant produces No. 1 and No. 2 Clean Coal, lump coal and thermal coal. The majority of the equipment in the Xinglongzhuang coalpreparation plant, including its jig machines, movable-sieve jig machines and flotation machines, was manufactured in the PRC whilea small portion of the equipment was imported.