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Progress of the Shanxi Jindi Coal Complex Project

26 October, before the 5th Joint Venture Conference in China took place, Group Chairman Mr Machida and President Mr Tanaka inspected our Shanxi Jindi Coal Complex Project. Mr. Kong Qing Ran, President of Shanxi Jincheng Coal Chemical Development Co., Ltd., our joint venture partner on the project, escorted them to main sites including the Chiyu Coal Mine and the Jindiindustrial estate.

This large scale coal complex project consists of coal mining sites, coal washery, coke production, synthetic ammonia, and power generation with a total investment mount of 150 billion yen and annual coal production capacity of 4.2 million tones.

In the Chiyu Coal Mine, a coal production capacity of which is 3 million tones per annum, we are excavating horizontal tunnels from major and sub mining mouths. Aiming to start our production by the end of 2011, we are tying to accelerate the construction and implement Longwall, a large excavator to inside a pit.

At the Nanyao Coal Mine, which was acquired and has a production capacity of 1.2 million tones, we have already implemented a Longwall to inside a pit. Its trial operation will start from early November.

A coal washery with 3 million tones capacity has already started its operation. Groundwork for the plants of cokes and synthetic ammonia are ongoing. Building constructions will start very soon for a power generator and cement plant. All the progress is on schedule.

Circulating Coal Complex Project with a total investment of 150 billion yen

This project, which Tokyo Boeki Steel & Materials has been working on for almost 10 years since 2002, is scheduled to start its full operation in 2012. This kind of large scale circulating-form complex is quite rare even in China.