Ring in 2013: Year of major consolidation.In line with the implementation/spirit of the Plan, the Guizhou province of China (in which the Company operates two of its four coal mines) on April 15, 2011 issued a provincial-level notice/order (the “Guizhou Consolidation Policy”) that set forth the following key points, among others—by the end of year 2013: (i) the total number of coal-mine related business enterprises in the Guizhou province (“Guizhou Coal Enterprise”) shall be limited to no more than 200; (ii) each Guizhou Coal Enterprise in Gui Yang City of Guizhou province shall reach at least the capacity to produce One Million (1,000,000) tons of coal per year; (iii) each Guizhou Coal Enterprise in Liu Pan Shu City of Guizhou province shall reach at least the capacity to produce Two Million (2,000,000) tons of coal per year; (iv) for certain coal mines, the mechanization level for coal-mine development and coal mining shall reach respectively, 70% and 45% (by the end of year 2015, 80% and 55% respectively.)
While the Guizhou Consolidation Policy lacks specificity in some areas, it is clear that owners of smaller coal mines in the Guizhou province will face significant pressure in the next few years to sell their mines to bigger coal enterprises in the province. Therefore, the Company believes that the Guizhou Consolidation Policy is an opportunity to accelerate our acquisition of mines to become a leading regional coal company.
EMPLOYEES
As of January 31, 2011, we have approximately 1600 employees, of which approximately 10 work in at our Seattle headquarters, approximately 25 work in our China Operations Center in Kunming City in Yunnan Province, approximately 55 work in our coal wholesale and distribution operations, approximately 360 work at DaPuAn mine and coal washing facility, approximately 250 work at SuTsong mine, approximately 300 work at Ping Yi mine, approximately 80 work at Ping Yi coal washing facility, approximately 200 work at ZoneLin coking plant, approximately 120 work at Da Ping mine, and approximately 215 work at Hong Xing coal washing facility. Of our approximately 1,600 employees, approximately 1,200 are employed in a direct production capacity and, approximately 400 are employed in administration, sales, or executive capacity. The Company complies with all employment and labor laws in the United States and we comply with all employment laws in China, which require we have written contracts with all of our employees in China
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