Abstract: Development of coal industry in China has attracted attention over recent years. However, problems such as small-scale mining operation, poor safety record and low risk resistance capacity remain unsolved. Despite the fact that state government aims to promote large-scale coal production bases and companies, experts have been quite divided in how to actually implement this strategy. As a relatively new comer in domestic coal industry, Shenhua Group manages to establish a new development model which is different from conventional coal producers in China. It has been proved that this model is feasible and worth noticing for other coal companies.