The coal mine in the low-lying Liulin mining area in which the company is a shareholder has reserves of 1.3 billion tons and an annual output of 5 million tons is undergoing further approval. However, it is expected that at the end of this year, there may be a definitive conclusion. If the approval is passed, the company will be able to solve the demand for feedstock coal, and its cost advantages will be even more obvious. The company's current pig iron production capacity is 1 million tons, and it needs 1.5 million tons of 65% grade iron ore every year. Half comes from imports and the other half comes from domestic sources. Currently, the company imports iron ore (70% grade) to the factory at a price of 1,700-1,800 yuan/ton. Affected by rising iron ore prices, the gross margin of pig iron is expected to stabilize at around 10% this year, 2 percentage points lower than last year.