A growing demand for coal in China as well as globally is one of the main factors pushing up coal prices. Therefore, the discovery of new abundant reserves will aid the future business development of coal enterprises.

Following a general meeting of shareholders on 2 Sept 2008, Che Shuchun, Chairman of the Board of Directors of the company, said that the company had never before been concerned about its coal reserves.

In addition, Ning Zhihua, Secretary of the Board of Directors asserted that the company as the largest domestic coking coal manufacturer is currently accelerating its reserve exploration strategies, including seeking opportunities to acquire coal mines with higher potentials.

The company has presently signed an agreement with Ordos Wushenqi Shi Lin Chemical Co., Ltd. to cooperate in both a coal methanol project and the development of the Bayangaole coal mine in Inner Mongolia, which can optimize the company's industrial structure, enhance the added value of its coal products and provide new opportunities for the sustainable development of the company.

Source: Securities Daily

Date: 3 Sept 2008

CN01/VL/LZ/BT/KM