U.S. China Mining Group, Inc. is engaged in coal production and sales by exploring, assembling, assessing, permitting, developing and mining coal properties in the People’s Republic of China (PRC). The Company extracts coal, and then sells the coal on a metric ton basis. Its business comprises the operations of its Tong Gong coal mine through its subsidiary, Heilongjiang Tong Gong Mining Co., Ltd. (Tong Gong), in northern People’s Republic of China. The mine is located approximately 175 kilometers southwest of the city of Heihe in the Heilongjiang Province. Its four types of coal include lignite, sub-bituminous, bituminous and anthracite. Tong Gong’s coal is primarily sold to power plants, cement factories, wholesalers and individuals for home heating. During the year ended December 31, 2013, its customers included Heilongjiang QiQiHaEr Huadian Power Plants Co., Ltd. and Heilongjiang Nengjiang Hongyu Logistics Company.