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Shanxi Coal Receives Approval to Consolidate Coal Mines
10/01/2009 - Puda Coal's subsidiary Shanxi Puda Coal Group receives final approval from the provincial government to consolidate eight coal mines into five in Shanxi Province.
Puda Coal, Inc. announced that its subsidiary Shanxi Puda Coal Group Co., Ltd. received final approval from the provincial government to consolidate eight coal mines in Shanxi Province.
On September 28, the Shanxi provincial government appointed Shanxi Coal as consolidator for eight coal mines in Yucheng City, Pinglu County. In February 2009, Shanxi Coal signed a letter of intent with Pinglu County to consolidate and restructure a coal mine area encompassing six coal mines. The municipal government approved the application and delivered it to the Shanxi provincial government for final review.
Shanxi Coal will consolidate the eight coal mines into five, increasing their total annual capacity from approximately 1.6 million to 3.6 million tonnes. The government approval was the last step required to move forward with the development and consolidation.
Shanxi Coal has already commenced the technical geological prospecting process for the targeted coal reserves. The company will soon perform a comprehensive financial analysis of the project and then determine the most efficient plan to develop and construct the targeted consolidated coal mines.
"We are honored that the Shanxi provincial government granted Shanxi Coal this strategic opportunity to be one of the limited number of consolidators of coal mines in Shanxi Province," said Liping Zhu, President and CEO of Puda Coal. "This project will enable us to develop our coal mining business, move upstream in the coal industry, and continue our efforts to maximize shareholder value."
Puda Coal, through its subsidiaries, supplies premium-grade coking coal to the steelmaking industry in China for use in making coke. The company currently possesses 3.5 million tonnes of annual coking coal cleaning capacity. Shanxi Province provides 20 to 25% of China's coal output and supplies nearly 50% of China's coke.
