Owing to the unique sedimentary-tectonic background and abundant coal resources of the Santanghu Basin in Hami, Xinjiang, this area has attracted coal geologists' attention in the recent years. With exploration of Santanghu coal project carrying out in 2009 in the largest ready coalfield exploration area in China, main breakthrough has been achieved in the Santanghu Basin. By the end of 2012, exploration work yielded the resources amount up to 5,144,356,300 tons at the depth of 1000 m. The resources of middle Jurassic Xishanyao coal seam (2～20) amounts to 37,392,727,400 tons, the resources amount to120, 000,000,000 tons at the depth of 2000 m. The main coal seams in this area include cannel coal and non caking coal. The former is widely distributed in the whole region, and the latter is characteristics of low moisture, ultra low-middle ash, middle high-high volatile, very low-low sulfur, ultra low-middle phosphorus, middle-ultra high calorific value, etc. In addition, analysis of coal facies shows that the main coal seam of Xishanyao transited from open water marsh to wet forest marsh. While the Badaowan coal mostly was in wet forest marsh and its gelation in the Xishan Coal Mine is relatively weak, resulting in relatively complete preservation of plant structure. It is determined that the middle-lower Jurassic sedimentary environment of Santanghu Basin was mainly lake-lake delta facies and paleo-climate tended to be warm in early to Middle Jurassic. Such environment was suitable for growth of coal plant. Meanwhile, the middle-lower Jurassic deposition was effected by weak structural tension stress, with the coal accumulation center characterized by gradually migrating from Hanshuiquan Sag to Tiaohu Sag.