We are one of the largest domestic marketers of coal and the largest export coal producer in China in terms of our domestic sales and export volume in 2006. Our sales and marketing department is headquartered in Beijing and has 18 sales offices throughout China.

(1) Domestic Sales
In 2006, we sold 147.2 million tonnes of coal in the domestic market, which accounted for 86.0% of our commercial coal sales. Long term contract sales were 119.3 million tonnes, which accounted for 81.0% of our domestic sales and spot market sales were 27.9 million tonnes, which accounted for 19.0% of our domestic sales. Our domestic sales are concentrated in the power sector.

(2) Export Sales
In 2006, we exported 23.9 million tonnes, which accounted for 14.0% of our commercial coal sales. Approximately 85% of our export sales were long-term contract sales. We focus on the Asia-Pacific coal export markets, including South Korea, China Taiwan, Japan, etc

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