Coal
In 2006, by balancing production and optimizing production procedure, Shendong Coal Branch’s coal production totaled 114.68 million tons, marking the seventh year in a row of 10-million annual production
increase, which contributed significantly to Shenhua Group’s overall production. Shendong Coal Branch’s total coal production efficiency amounted to 124 tons/manshift, and working face production efficiency
603 tons/manshift. The annual coal production of three comprehensive mining teams and six mines in Shendong exceeded 10 million tons.
Shendong Coal Branch made 72 new records, such as monthly coal production of 10.22 million tons and monthly coal production of 1.07 million tons for a single comprehensive mining team. Bulianta Mine
became the first underground mine in the world with a capacity over 20 million tons. By upgrading opencut mining equipment and expanding transportation
capacity of Dazhun Railway, Shenhua Zhunge’er Energy Company’ s commercial coal production reached 23.6 million tons. Several new records have been set in raw coal production and coal loading. Heidaigou
Opencut Mine became the only mine in China with an annual production of 20 million tons.

Shenhua Ningxia Coal Industry (Group) Corporation accelerated its technical innovation and promoted utilization of continuous miner to improve coal production of a single team working at a single face. The coal production amounted to 28.28 million tons, a year on year increase of 22%.
By intensifying production and management, Shenhua Xinjiang Coal Company improved its coal production to 8.5 million tons, a 34% increase year on year.
Shenhua Baorixile Coal Company increased coal roduction of its opencut mines to 5.8 million tons, a 30% increase year on year.
Shenhua Haibowan Coal Mining Company and Shenhua Wuda Coal Mining Company improved mining mechanization and coal production of a single team working at a single face and adjusted production mix to have set a new high in coal production. Shenhua Beidian Shengli Energy Company made great efforts on infrastructure and management. The coal production amounted to 2.77 million tons, a 69% increase year on year.
We established an overall marketing framework and increased our market shares. We coordinated the common market of CSEC and non-listed entities within Shenhua. We gave more priority to our key customers by ensuring coal quality, service and full implementation of contracts. We supervised the loading process to keep the reputation of “Shenhua Coal Brand”. We overperformed in the purchase of external coal and coal blending. Efforts have also been made to the promotion of the coal products of non-listed entities with Shenhua. We sold brow coal of Shenhua Baorixile Energy Company to Huaneng Yinkou and Guohua Suizhong power plants, coordinated coal export and coal payment back of Shenhua Xinjiang Coal Company, helped Shenhua Ningxia Coal (Group) Industry Corporation with its external coal sales and transportation, and developed market in eastern and northern China for “Western Five” Coal Company’s high calorific and high sulfur fat coal.
coal quality index     
Shenhua mixed coal 1# Shenhua mixed coal 2# Shenhua mixed coal 3# blending coal 1# blending coal 2# carboniferous 1# carboniferous 2# carboniferous 3# meager  lean  coal Wuhai mixed coal
total moisture(Mt,%)              <17 <20 <20 <16 <15 <10 <15 <10 <12 <10
ash(Aar,%)             <12 <16 <20 <15 <30 <25 <30 <40 <28 <40
volatile matter(Var,%)           23-32 21-30 21-30 24-33 22-31 24-31 22-31 22-31 10-20 10-20
total sulfur(St,ar,%)            <0.6 <0.8 <0.8 <0.8 <1.0 <3.0 <1.0 <1.5 <2.0 <0.6
calorific value(Qnet,ar,kcal/kg)   >5500 >5200 >4800 >5400 >5000 >5400 >4800 >4200 >5300 >4500
softening temperature(ST,℃)          1150 1150 1150 >1250 >1300 >1400 >1350 >1400 >1400 >1400
Hardgrove grindability index(HGI) 50-60 50-60 50-60 50-60 50-60 50-60 50-60 50-60 50-60 50-60
particle size(mm)               0-50 0-50 0-50 0-50 0-50 0-50 0-50 0-50 0-50 0-50
remarks       considering coal blending operation cost         including minerals
coal quality index  series of special  species series of Zhunger mixed 
coal of special low ash content coal for chemical industry coal for coal water mixture washed lump 1# washed lump 2# washed lump 3# Zhunger mixed coal 2# Zhunger mixed coal 3#(5500) Zhunger mixed coal 3#(5000) Zhunger mixed coal 5#
total moisture(Mt,%)              <16 <17 <15 <16 <16  <16  <13 <17 <17 <13
ash(Aar,%)             <6.5 <8 <15 <12 <12  <12  <23 <12 <16 <35
volatile matter(Var,%)           30-37 30-37 30-37 24-33 24-33 24-33 23-31 23-32 21-30 21-30
total sulfur(St,ar,%)            <0.5 <0.6 <0.6 <0.6 <0.6  <0.6  <0.8 <0.6 <0.6 <0.8
calorific value(Qnet,ar,kcal/kg)   5850-5950 5650-5750 5650-5750 >5500 >5500  >5500 4900-5000  >5500  >5000 >4300
softening temperature(ST,℃)          1200 <1280 >1250        >1400 1150 1150 >1400
Hardgrove grindability index(HGI) 50-60 50-60 50-60       50-60 50-60 50-60 50-60
particle size (mm)               0-50 0-50 0-50 30-100    100-300 0-300 0-500  0-100 0-50 0-50 0-100
remarks based on dry basis not port screening raw coal