Yitai Coal and Zhongtai energy enter into coal custody agreement

Yitai Coal recently announced that on January 15, 2020, the company and its holding subsidiaries Suancigou mining, Yitai Baoshan Coal and Yitai Dadi coal respectively entered into coal custody agreements with Zhongtai energy. Accordingly, the company and its holding subsidiaries Suancigou mining, Yitai Baoshan Coal and Yitai Dadi coal entrust six coal mines to Zhongtai energy management as a whole. The entrusting party entrusts Zhongtai energy to carry out the whole process management of all assets, safety production systems and office and living areas of the six coal mines in terms of the relevant scope of safety production in the well and underground and within the area. According to the announcement, the entrusted management is the inevitable choice for the group to strictly implement the custody measures and carry out production and operation activities in accordance with laws and regulations. At present, the group adopts the production mode of labor outsourcing in cooperation with specialized service units, which is not in line with the relevant provisions of the custody measures. In order to strictly implement the national policy, the group chose to entrust the coal mine as a whole. In addition, the entrusted management can reduce the safety risk and safety responsibility of the group.