International Mining Machinery Holdings Limited Announces Shanxi JV with Shanxi Coal Transportation

HONG KONG, Dec. 8, 2010 /PRNewswire-Asia/ -- International Mining
Machinery Holdings Limited ("IMM" or "the Company"; HKEx: 1683), a
leading designer and manufacturer of underground longwall coal mining
equipment in China, is pleased to announce that IMM has entered an
agreement with Shanxi Coal Transportation and Sales Group Co., Ltd.
("Shanxi Coal Transportation") to establish a joint venture to meet the
enormous demand for coal mining machinery in the rapidly consolidating
coal mining market in Shanxi. This landmark agreement is a significant
milestone for IMM, as it lays a solid foundation to add to the Company's
already rapid growth.

According to the terms of the agreement, the two parties will set up a
joint venture (the "JV"), under the name of Shanxi Meijia Mining
Machinery Company Limited, with Shanxi Coal Transportation holding 51%
and IMM controlling the remaining 49%. IMM will be responsible for the
daily management of the joint venture. With a 50-year term, the joint
venture company will be principally engaged in the production, sale and
marketing of roadheaders and other mining machinery. The two parties
have already signed the joint venture agreement, and the planning stage
of production, sales and operations for the joint venture is in full
swing. Production is expected to start by the end of 2011.

Pursuant to the JV agreement, the registered capital of the JV company
will be RMB69 million, RMB33.81 million of which will be contributed by
the Company (through a wholly-owned subsidiary, Jiamusi Machinery) with
the remaining RMB35.19 millionfrom Shanxi Coal Transportation through a
wholly- owned subsidiary. It is expected that the JV company will invest
aboutRMB83 million as an initial investment. Initially, the JV company
will focus on the production and sale of roadheaders and will later
include shearers, armoured- face conveyors and other coal mining machinery.

Shanxi Coal Transportation is a large, modernised coal mining and
logistics group established by the Shanxi State-owned Assets Management
Committee and 11 municipal state-owned assets management committees.
Shanxi Coal Transportation is engaged in a wide variety of coal-related
businesses, including the sale of coal and coke, coal and coke
technology development, the sale of coal chemicals and the production of
coal mining machinery. Shanxi Coal Transportation is an industry leader
with strong experience in the entire supply chain of coal, from
production and sales to transportation-related logistics. Shanxi Coal
Transportation, with an annual coal sales volume of about 200 million
tons, ranked as the second largest company among China's top 100 coal
enterprises in 2009 according to China National Coal Association and is
the 85th largest of China's top 500 enterprises in 2010 according to
China Enterprise Confederation.

As a leading coal enterprise, Shanxi Coal Transportation has rich
management experience and is a significant player inShanxi's coal mining
market. Shanxi Coal Transportation owns 163 modern coal mines sharing
the same centralised planning and procurement. It is expected that
Shanxi Coal Transportation will be producing more than 100 million tons
of coal annually in 3-5 years.

Shanxi is a key coal mining province with annual coal production
reaching 615 million tons. The province has an acute demand for coal
mining machinery, making it a strategic market with vast development
potential. The central government has placed a priority on the coal mine
consolidation in Shanxi province in order to lift overall productivity,
mine safety and quality of coal produced. In the last quarter of 2009,
the monthly coal production in Shanxi reached a record volume of 61.03
million tons. As the industry consolidation continues, hundreds of small
and non-mechanised mines will be closed and replaced by much bigger and
more modern mines. These new mines will require mining machinery from
companies such as the JV company. Moreover, the central government has
given top priority to mine safety and the demand for modern coal mining
machinery will continue to rise, providing the JV company with ample
development opportunities in the Shanxi market.

Mr. Thomas H. Quinn, Chairman of IMM, said, "Shanxi Coal Transportation
is a leading coal mining enterprise and we are delighted to partner with
such an impressive organisation. Apart from having strong backing from
the Shanxi provincial government, it is leading the industry in many
ways including a wide scope of businesses and services and an
outstanding management track record. We are confident that the joint
venture will achieve outstanding results based on the leading industry
position of Shanxi Coal Transportation and the progressive and talented
management of IMM."

Mr. Kee-Kwan Allen Chan, CEO of IMM, said, "The partnership with Shanxi
Coal Transportation is mutually beneficial, and will boost IMM's
competitiveness in such a huge market. The ongoing consolidation in the
coal mining industry gives rise to huge market opportunities, which the
joint venture company will successfully exploit to expand its market
share, given its geographical advantage in Shanxi."

About International Mining Machinery Holdings Limited (IMM)

International Mining Machinery Holdings Limited is a leading designer
and manufacturer of underground longwall coal mining equipment in China.
Three of its products are roadheaders, shearers and armoured-face
conveyors. Its end customers include all of the 50 largest coal
producers in China, which collectively accounted for approximately 60%
of the total coal production inChina.

The Company has been listed on the Main Board of The Stock Exchange of
Hong Kong Limited since 10 February 2010 (stock code: 1683). On 6
September 2010, IMM became a constituent stock for the Hang Seng
Composite Index and its sub-indexes, namely the Hang Seng Composite
Industry Index -- Industrial Goods and Hang Seng Composite SmallCap Index.