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Brokered Coal

US China Mining Group from small independent mines operating in the areas surrounding the mines that we operate.  Because operators of these small mines often lack the means to transport coal from the mines, they have no market for their coal other than selling it to us at competitive prices.  The brokered coal enables our subsidiaries to fulfill their respective sales obligations.  Tong Gong currently brokers approximately 124,400 tons of coal annually at approximately 30% mark up of the costs of the coal that it mines.  Xing An, on the other hand, brokers approximately 280,000 tons of coal annually at approximately the same costs as the coal that the company mines.

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