Nantun Coal Mine is located in the southern portion of Yanzhou coalfield, with a coalfield area of approximately 35.2 square kilometers. Nantun Coal Mine began commercial production in 1973 with a designed annual raw coal production capacity of 2.4 million tonnes of coal. The maincoal seam of Nantun is divided into four leaves. The thickness of the upper leaf averages 5.35 and 3.21 meters and the thickness ofthe lower leaf averages 0.89 and 1.03 meters. As of December 31, 2013, the total in-place proven and probable reserves on the maincoal layer were approximately 105.0 million tonnes.

Nantun Coal Mine primarily uses the longwall top coal caving mining method to extract coal. As of December 31, 2013, Nantunproduced coal from three work faces. Nantun’s coal preparation plant produces mainly No. 2 Clean Coal and employs movable-sievejig machines and jig machines. Most of the equipment used in the Nantun coal preparation plant was manufactured in the PRC.