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              HOME PAGE-Company Profile-Coal Industry-Coal Transportation-
               

              Most of Yanzhou Coal’s major coal customers are located in eastern China and our remaining domestic customers are located in southern andnorthern China. The Company delivers coal to our customers primarily by railways and highways, and by waters as well. With the Company’s private railway network, the Companyisable to connect to the national railway system or deliver coal directly to Zouxian Power Plant.

              Yanzhou Coal also ships coal on the national railway system to ports, such as Rizhao, for delivery to customers. Rizhao Port is the Company’s main portfor shipping coal. The Company also uses the Beijing-Hangzhou Grand Canal to ship coal on barges to customers located in the area serviced by thecanal, primarily Jiangsu and Zhejiang. In Shanxi, the Companyrelys on the Yangshe Railway, which intersects the TianchiCoal Mine, and trucks todeliver coal to Hebei, Shandong and other nearby areas. The Companyrelys on the Baoshen Railway and trucks to deliver coal from Anyuan CoalMine and Wenyu Coal Mine to Hebei and the surrounding areas.

              We plan to construct a privately operated railway to connect Zhaolou Coal Mine with the national railway system. Beforecompleting the construction, we will continue to rely on trucks to deliver coal from Zhaolou Coal Mine to the national railway andcustomers.

              Yanzhou Coal transportsYancoal Australia’s coal products to Newcastle Port and Gladstone Port in Australia using third parties’railway networks. These coal products are then exported to South Korea, Japan and other destinations by sea. Yancoal Australia owns a 27.0% interest in Newcastle Infrastructure Group (“NCIG”), a joint venture responsible for constructing and operating the third exportterminal at Newcastle Port, which has a designed annual port capacity of 63 milliontonnes through NCIG’s facility. In addition, Yancoal Australia owns a 5.6% interest in Wiggins Island Coal ExportTerminal Holdings Pty Limited in Queensland, and Yancoal Australia has been allocated an annual port capacity of 14 million in the Port.

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