Shanxi Gaohe Energy Company (SGEC) is Asian American Coal's second investment in the Chinese coal industry. Its partner, Luan Mining Group, holds 55% of the joint venture, with Asian American owning 45% and holding key management positions at the mine.

The Gaohe lease contains a JORC-compliant in-situ resource of 664 million tonnes and management believe 320Mt of coal will be extracted from the No. 3 seam.

The mine is expected to produce 6Mtpa, but Asian American Coal chief operating officer Ron Hite told International Longwall News the operation has a potential output of 10Mt - an aspiration set for 2012 and beyond.

With a seam height of 7-8m, Asian American plans a hybrid Longwall Top Coal Caving operation at this stage.

"Right now we are planning to sub-level cave unless coal strength sampling tells us different in the next four months "because we have to order equipment real quick," Hite said.

Currently Gaohe's 8.2m production and service shafts, as well as ventilation shafts, are at depth with pit bottom development underway at three. The operation is in the process of connecting the four shafts.

Hite said the mine is also erecting a production hoist so some "very intense excavation underground is going on to get ready for that".

At the moment most workers are technical staff and all underground construction development is being carried out by contractors.

Coal haulage will be accomplished through a series of interlocked underground conveyors feeding a bunker at the skip loading station which will be brought to the surface with a multi-rope friction hoist system with two pairs of 25-tonne capacity skips.

Don't miss the December edition of American Longwall Magazine for a full story on Gaohe, AACI's producing mine Daning and Ron Hite's experiences as a coal producer in China.Click here to subscribe to American Longwall Magazine or to receive one complimentary copy.