Tianchi Coal Mine is an underground mine located in Heshun County of Shanxi, with an area of approximately 18.7 squarekilometers. Tianchi Coal Mine commenced commercial production in 2006 and the designed production capacity was increased to1.2 million tonnes per annum in the same year. Tianchi Coal Mine is operated by inclined shaft development and primarily producesthermal coal. The average thickness of the target coal seam is 4.6 meters. As of December 31, 2013, the total recoverable reserves ofTianchi Coal Mine were approximately 24.68 million tonnes.
Tianchi Coal Mine primarily used the longwall top coal caving mining method to extract coal from one work face at Tianchi Coal Mine as ofDecember 31, 2013. The primary piece of equipment in this system is a dense media slanted wheel, which was manufactured in China. Theoperations at Tianchi Coal Mine are powered by electricity from local power grids. Yanzhou Coal ships coal products from the Tianchi CoalMine to Hebei and surrounding areas on the Yangshe Railway and the national railway network, as well as the highway network.