Muli mine, situated in Tianjun and Gangcha counties, is located in the northern part of Chi-lien Mountains on the Tibetan Plateau and sits 4100 mt to 4300 mt above sea level. The open cast mine system consumes and pollutes water from the Datong, Shule and Buha rivers, which are all important tributaries of the Yellow River. The Muli mine is responsible for excavation and extrusion and destruction of permafrost, wetlands and alpine meadows.

A Greenpeace investigation has revealed the presence of a giant coal mine that has been illegally encroaching on a nature reserve at the source of the Yellow River. The sprawling mining operation, covering an area 14 times larger than the City of London, at an altitude of over 4,000m, has been documented in detail for the first time by Greenpeace East Asia. With evidence gathered on the remote region with satellite images and analysis by legal experts, Greenpeace has established that the coal development violates a number of water protection laws and local nature reserve regulations.