The Xing An mine produces high-quality thermal coal, which is sold throughout China.
The new coal sorting business consists of sourcing raw coal from producers in Inner Mongolia and then cleaning and sorting this coal at the Xing An facility.
The company expects to sort at least 500,000 metric tons in FY2011 with gross profits of about $15 per metric ton.
US China Mining Group is engaged in coal production and sales by exploring, assembling, assessing, permitting, developing and mining coal properties in China.