To improve technological level of coal industry and transform means of coal production growth, is not only a necessity for the healthy development of coal industry, but also a key to improve China's energy supply and ensure energy security. The future direction for coal industry upgrading mainly lies in structural optimization and technological innovation. Shendong has carried out successful practices in the construction of a large coal production base characterized by "four principles" , which bears symbolizing significance to the upgrading of coal industry by promoting the development of Chinese coal industry in aspects of "scale, pattern and equipment" . It is suggested that Chinese government should expedite the promulgation of industry policies as well as ancillary safeguarding measure and actively promote the industry upgrading to establish a unified energy management system. By introducing Shendong development pattern, both recovery rate and the utilization of mineral resources will be increased.