In 2006, commercial coal production amounted to 136.6 million tonnes, representing a year-on-year increase of 15.2 million tonnes or 12.5%; coal sales amounted to 171.1 million tonnes, representing a year-on-year increase of 26.7 million tonnes or 18.5%. In 2006, our raw coal production of 150 million tonnes accounted for 6.3% of the national raw coal production of 2.38 billion tonnes. Export sales volume, which was 23.9 million tonnes, accounted for 37.8% of the national export sales of 63.3 million tonnes

Our Shendong Mines continued to maintain its leading position among underground mines around the world, both in production volume and efficiency of underground workers. In December 2006, Bulianta mine became the first underground mine in the world with annual production volume of 20 million tonnes. Shendong Mines also includes five 10 million-tonne class underground mines: Daliuta, Yujialiang, Halagou, Shangwan and Kanjiatan. In 2006, the commercial coal production of Shendong Mines accounted for 77.2% of the total commercial coal production of the Company. In 2006, the coal production per capita in underground mines of Shendong Mines was 28,136 tonnes.

Extensive technological revamp of the Wanli Mines was carried out with certain mines combined, and mechanised mining improved, thus providing a foundation for expansion of production capacity in the future.

In 2006, production of the Heidaigou mine at Zhunge’er Mines amounted to 23.5 million tonnes, making it the largest open- cut mine in the PRC.

Construction of open-cut mine in Shengli No.1 of Shengli Mines is still underway.

As at 31 December 2006, under the JORC Code, our marketable coal reserve was 5.96 billion tonnes and our resources was 14.85 billion tonnes, which forms a very sound basis for our long-term development.