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Low Mining Cost for Up Energy’s Coal Resources
Thick Coal Seams = High Prod. Efficiency
The coal seams of Up Energy’s mines are
relatively thick, which is easier for mining and
the coal production system is relatively simple
and concentrated.
This increases the efficiency of mining
operations and the productivity of its mining
equipment, resulting in a higher recovery rates.
The thick coal seams allow two face layouts set
in two sides of the same tunnel, which means
lower capital expenditures due to less channel
construction. This significantly reduces the
capital expenditures on a raw coal tonne basis.
Adv. Mining Equipment = Lower Op. Cost
Up Energy uses highly mechanized mining
methods and advanced mining equipment that
results in higher productivity, lower staffing
requirements and less maintenance
requirements, thus significantly driving the
labour and maintenance costs down.
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Up Energy Cost and Profit Advantage
Coke Supply to Local Customers
To ensure constant product demand, Up
Energy has entered into 5-year strategic
cooperation agreements for coking coal
and coke supply with 2 major local steel
producers and 3 major local coking plants.
Efficient Transportation Network
Our coal mines are close to Tu-Wu-Da
Expressway and Wuzhun Railway. Relatively
low transportation cost and convenient
transportation network effectively enhance
the competitiveness of our products.
Quality Products = Better Sales Price
Our coal resource is low in ash, high in
volatile, low in sulfur content, with high
calorific value and good caking index.
Compared to the weighted average price of
individual coal type found in coking coal
blends, the price of a blended coal can be
sold at a premium of 10% or higher.
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