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---------------------------- Coal ---------------------------- 

Coal industry is the basic industry of China Kingho Group. During the “Twelfth Five-Year" period, the group will further optimize the industrial structure of the coal sector and move forward the development of each mining area so as to make a coal output of 50 MT. The company is making efforts to create safe, modern and efficient mines with greater infomationization and automization and carry forward professional management for mine construction and coal exploitation. Making full use of resources and markets at home and abroad and practicing “Going out “strategy, we make progresses while maintaining stability to avoid risks of resource development in Africa. Make a comprehensive plan and landscaping in order to build new, harmonious and beautiful mining areas. By the end of 2012, the group has developed 5 mining areas with a total output of 15 MT per year.

----------------------------Coal Chemical Industry ---------------------------- 

Make full use of coal resources inside and outside the province, focus on clean use of coal, develop down-stream products for coal emery, move forward Coal to Olefin project, build large coke production base, develop deep processing and refining by comprehensive using of coke oven gas, coke tar and crude benzene, construct integrated coking, integrated coking salinization, integrated coking-metallurgy, integrated coal-electricity-aluminum so as to implement polygeneration of electricity, thermal energy, liquid fuel and chemicals and build a new style coal chemical base featuring with combination of coal chemical, energy, sanilization and metallurgy.

----------------------------Coal to Gas ---------------------------- 

Develop modern coal gas industry is a major national strategy. During the “Eleventh Five Year Plan” period, China Kingho Group invested a coal gas project (5.5 billion cubic meter of per year) and relative supporting projects in Yining County in the central area in Yili River Valley where boasts rich water and coal resource. This project has been listed as a demonstration project for new national chemical coal industry.By the end of 2012, Phase I of the coal-gas project has been completed, and Phase II (4.125 billion cubic meters per year) is under construction.

----------------------------Steel Industry ---------------------------- 

Specialize in and do well in steel industry, support and utilize low-grade iron ore hard to be processed, strengthen recycle of associated iron and enhance resource support. Speed up technical renovation to current manufacturing technique, promote product upgrade, consolidate production capacity of special steels, and plan the construction of stainless steel project of 1 MT. Based on the resources and market inside and outside the province, move forward steel industry integration project and establish new special steel production bases in West China. Accelerate the pace of structural adjustment, weed out backward production, promote annexation and reorganization of ferroalloy enterprises and enhance industry intensity.