Take advantage of coal mine mouth Power Plant

Since 2002 with the supply and demand changes of coal market and great fluctuation of coal prices, the fuel cost of power enterprises raised much higher. Some of them nearly reached 70% of the total operation cost. Datang power is favorite to its preceding distribution of the power plants which the coal mine mouth power plants contribute to the lower fuel cost. The company's fuel cost still reach 50% of total operation cost in 2004.

Investment in Coal Resource Development

1. Increase self-secured coal resource with less reliance on contract coal;

2. Tashan coal mine starts operation in 4Q and 10 million tons per year exclusively supply Datang;

3. Seek more such opportunities to raise the proportion of self-secured coal over 50%.

Investment in Railway Transportation

1. Invest in Daqin Railway of Corporation;

2. Guarantee the transportation for secured coal resource;

3. Seek more opportunities to enlarge transportation capacity.

The company fully utilizes its expertise in Greenfield projects and operating projects to lower fixed costs and variable costs so as to further improve the company's market competitiveness.

Raise the proportion of contract coal and reduce amount of average purchase coal which is hither prices

Optimize dispatch the unit, firstly guarantee lower fuel cost units

Gradually raise the proportion of large capacity and high parameter units, raise the units' efficiency.

Strengthen operation units' technical renovation, raise the facility's output.

Strengthening unit's maintenance and repair, improve the units' operation level.