In order to develop high-quality main coking coal in Liu Li mining area and promote the rapid economic development in the old Lvliang area, the two sides invested in the construction of Xiaoliu Railway. There are abundant coal resources along Xiaoliu, and the proven reserves in Liu Li mining area reach 7.2 billion tons, especially the No.4 main coking coal in Liu Li mining area, which has high quality, less impurities and low ignition point, and can be independently refined into high-quality metallurgical casting coke, which is praised as "national treasure" by the Ministry of Coal. Besides coal, there are coke, bauxite, steel and so on.
Xiaoliu Railway starts from Xiaoxi Station of Jiexi Branch Line of South Tongpu Railway in the east, passes through Xiaoyi, Fenyang, Zhongyang, Lishi and Liulin, and reaches Mucun Town of Liulin County in the west, with a mileage of 1 16 km. Set up stations in Cao Dong, Shizhuang, Xiaojing, Huigou, Sanjiaozhuang, Zhike, Liugou Village, Zhongyang, Zhujiadian, Lishi, Wang Jiahui, Liulin County and Kimura 13.
Shanxi Xiaoliu Railway Co., Ltd. is a large state-owned second-class enterprise. Implement the general manager responsibility system under the leadership of the board of directors. The board of directors consists of seven people, including four from Shanxi Province and three from the Ministry of Railways. The chairman is appointed by Shanxi Province, and the vice chairman is appointed by the Ministry of Railways.