Yangquan plays an important role in the trades of coal mining, energy, heavy and chemical industries of Shanxi Province, which has been defined as the key area for investment by the central government in recent years. The policy of reform and opening -up has given impetus to the local economy, which has experienced a sustained and healthy development. By the end of 2008, GDP reached RMB 31.08 billion and finance revenue reached RMB 6.81 billion. After 60 years of development, Yangquan has become an industrial city with coal mining and power generating as its backbone, electrolytic aluminum, metal magnesium, refractory and magnetic materials as leading industries, along with a number of other significant sections, including its solid industrial foundation, strong technical force, and its more than 2000 range of products. In 2008, the annual output of coal reached 60.15 million tons, electricity generated 14.67 billion kWh, electrolytic aluminum produced 150,000 tons; iron powder material 13160 tons annually.