The TongGong Coal Mine is located in the western slope of the Xiaoxinganling Mountain in the Heilongjiang Province in Northeastern China. The mine, which was originally installed in 1995 as the Jinchang Coal Mine, was purchased by Songzai in 2003 and renamed TongGong Coal Mine.

In place coal reserves are estimated to be 4,417,000 tonnes. Assuming a safety factor of 1.4, the recoverable reserves are estimated at 3,157,000 tonnes.

Steam coal (coal used by electric power plants and industrial steam boilers to produce electricity) is currently being produced from the mine and is being sold for power generation, cement rotary kiln, industrial coal, and house coal purposes. The coal being produced is long-flame, low sulfur, high calorie coal.

Songzai estimates the following market potential for the power plant, cement factory, and home use markets:
Power Plants—200,000 tonnes per annum (tpa)
Cement Factory—100,000 tpa
Home Use—500,000 tpa

The industrial and home use coal is sold at the mine. Steam coal is trucked to a nearby railroad cargo station, which is approximately 500 meters from the mine. The 500 meter road from the coal mine to the railroad cargo station is being improved to reduce trucking time. A conveyer belt to cover the 500 meter road is also being installed. By the time of completion, the coal will be transported in a ceaseless process from the coal mine to the railroad cargo station.

Mine design capacity is estimated at 150,000 to 200,000 tpa based on mine operating conditions. The mine has government approval for the 150,000 tpa capacity. Mine service life, based on a reserve base of 3 million tones (Mt), is 20 years.

According to the John T. Boyd Company, an international mining consultancy with over 60 years of mining industry expertise in over 50 countries, “TheTongGong Coal Mine has the potential to be a long-term successful mining operation with potential for higher output levels than projected….”