Improve the supporting facilities for coal chemical raw materials; Baotailong's 300,000-ton coal mine launches joint trial operation.

On July 15, Baotailuan released an announcement disclosing that the company had received the "Reply for Filing of Construction Project Joint Trial Operation" issued by the Heilongjiang Provincial Coal Production Safety Administration on July 13, officially agreeing to launch the joint trial operation of its Baotailuan No. 2 Mine new coal mine project.

The completion of this filing marks the basic conclusion of the coal mine construction phase, formally transitioning to a critical period of equipment linkage debugging, underground system trial operation, and personnel operational run-in, moving one step closer to official production.

Project Basic Overview

Baotailuan No. 2 Mine is located in Xinxing District, Qitaihe City, Heilongjiang Province. The mine is designed with a construction scale of 300,000 tons/year, belonging to a regional small and medium-sized standardized coal mine. It is equipped with a complete set of underground and ground facilities including mining, ventilation, drainage, gas control, and coal storage and transportation. Upon production, it will stably supplement the company's own raw coal supply and improve the supporting facilities for the coal-chemical integration raw materials.

According to the explicit provisions of the filing reply, the mine's joint trial operation period is from July 14, 2026, to January 13, 2027, with a total trial operation duration of 6 months.

Core Work Content of the Trial Operation Phase

During the trial operation, the enterprise will comprehensively carry out full-process linkage debugging:

First, the complete set of equipment for underground mining, transportation, ventilation, and safety monitoring will operate in linkage simultaneously to verify equipment compatibility and operational stability;

Second, regular screening of underground safety hazards such as gas, water hazards, and roof issues will be conducted to improve emergency response procedures;

Third, practical operation training and safety assessments for personnel in all positions will be completed, and standardized production management systems will be fully equipped; Fourth, production operation data will be recorded simultaneously, and outstanding construction issues will be sorted out and rectified to make all preliminary preparations for the subsequent completion acceptance and application for the official production license.

Value Impact on Company Business

Baotailuan mainly engages in coal mining, coal-to-coke, coal-to-ethylene glycol, needle coke, and other coal chemical businesses. Its production facilities require stable raw coal as a core raw material all year round. The entry of No. 2 Mine into trial operation and subsequent production will increase the company's self-sufficiency rate for raw coal, reduce reliance on external raw coal procurement, hedge against cost pressure caused by raw coal market price fluctuations, improve the supporting facilities of the "coal—coal chemical" integrated industrial chain, and optimize overall profitability stability.

As a traditional coal industry cluster in Heilongjiang, Qitaihe has complete regional coal resource supporting facilities and convenient transportation. After the mine is put into production, it can simultaneously guarantee the stable supply of raw materials for the company's local chemical facilities and reduce the cost of long-distance raw material transportation.

Subsequent Key Processes

After the 6-month joint trial operation is fully completed and all safety and production indicators meet the standards, the company will submit a completion acceptance application to the provincial coal competent authority. Upon passing the acceptance, the coal mine safety production license will be processed, and the mine can then transfer to normalized formal production.