Recently, we visited Antai Group and had an in-depth exchange with Dong Mi on the progress of the company's participation in coal resource integration, the 800000-ton slag powder project and the company's operation.

Question1: the current production limit ratio? Production, sales, cost and raw material supply in the first three quarters?

At present, the company's production limit is still as high as 50-60%, which is comparable to that of the same industry in Shanxi. In the first three quarters, the company produced more than 700,000 tons of coke and about 700000 tons of pig iron. The main reason for production restriction is due to overcapacity in the industry as a whole, poor demand and low prices. in the first three quarters, the company achieved capital preservation in April and May, made a small profit in June-August, and fell into a loss again with rising coal prices in September-October. The company has no export for the whole year of 2009, and the conversion to domestic sales also needs new customers to digest, which is also one of the reasons for production restrictions. At present, the company's coke contains tax price of about 1650 yuan / ton, pig iron 2300-2400 yuan / ton. 90% of the cost of coke comes from clean coal, and raw coal accounts for 1% of the main coke concentrate, fat lean clean coal and 1x3 coking coal respectively; iron ore and coke account for 65% and 30% of the pig iron cost, respectively. In terms of raw materials, clean coal is mainly purchased from Fenxi Mining, Huozhou Coal Power and local coal washing plants, and the domestic and foreign purchases of iron ore are 50 / 50, and the procurement in 2009 has been relatively smooth.

Question 2: when will 650000 tons of coke be produced?

The company currently has a coke production capacity of 1.75 million tons, two sets of coke ovens in the first phase of Hongan Coking (each 550000 tons) and one set of coke ovens in the second phase (650000 tons). At present, the construction of the second set of coke ovens will be completed at the beginning of 2010. at that time, the coke production capacity will reach 2.4 million tons, an increase of 37% over the current, and after the company eliminated the original backward production capacity, the coke ovens are currently 6 meters, and its technology and scale are more advanced in the industry.

Question 3: how is the progress of the project and participation in the integration of Jinzhong and Jiexiu resources between the company and Fenxi Mining in Luliang area?

Source of funding? In recent years, the company has actively extended upward, cooperating with coal enterprises to develop new resources and participating in the integration of stock resources. at present, this work mainly focuses on the following aspects: first, the company established Fenxi Zhongtai Coal Company with Fenxi Coal Group in 2007. Fenxi holds 51%, the company holds 49%, and cooperates to develop coal resources in Luliang Zhongyang area. At present, the joint venture company has obtained exploration rights, and the initial proved resources are about 800 million tons, and the main types of coal are high-quality coking fat coal, and the mining rights are being applied for. After the completion of various examination and approval, the mine will be put into construction as soon as possible, and the production capacity will reach 5 million tons after the preliminary planning is completed.

Second, the company shares 14% with Fenxi Mining (51%) and Jinzhong City Ruitli Ecological Comprehensive Development Co., Ltd. (35%) (actual controller local government) to establish the main body of Jinzhong Ruitai Coal Company to participate in the integration of Jinzhong City resources. The main body has reached a preliminary intention with more than a dozen local coal mines, has taken over 6 of them, is applying for acceptance and resumption of production, and is expected to release capacity early next year.