Puda Coal Provides Update on Shanxi Province Coal Mine Consolidation
(NYSE Amex: PUDA), a supplier of high grade metallurgical coking coal used to
produce coke for steel manufacturing in
plans to consolidate eight coal mines.
On
subsidiary of Puda Coal, Shanxi Puda Coal Group Co., Ltd. (“Shanxi Coal”) as a
consolidator of eight coal mines in Yucheng City, Pinglu County. Shanxi Coal
has the government’s permission to consolidate eight coal mines into five.
The Company has commenced the technical geological prospecting process for
the targeted coal reserves. The Company will also perform a comprehensive
financial analysis of the project and then determine the most efficient plan
to develop and construct the targeted consolidated coal mines. So far, Shanxi
Coal has not entered into any definitive agreements for the acquisition of the
eight coal mines.
Below is a summary of the consolidation plan according to the government
approval:
Consolidation Plan
8 Coal Mines- 5 Coal Mines- Added
Pre- Consolidation Post- Consolidation Capacity
Total area of
Coal mines 18.3 km squared 35.6 km squared 17.3 km squared
Coal reserves 49.24 million 163.87 million 114.63 million
metric tons metric tons metric tons
Annual coal mine
production 1.65 million 3.60 million 1.95 million
capacity metric tons metric tons metric tons
Remark: the numbers listed in the sheet are excerpted from the approval
document of government
Pursuant to the government approval, Shanxi Coal will consolidate eight
coal mines into five, which is expected to increase the total area of the coal
mines by 94.5% to 35.6 square kilometers, expand the estimated coal reserves
by 232.8% to 163.9 million metric tons, and grow the coal mine production
capacity by 118.2% to 3.6 million metric tons per year.
The coal reserves of the target coal mines are mostly low-grey, high-
sulphur, high-heat lean coal and middle-grey, low-sulphur, high-heat and
strong adhesion coking coal. Lean coal is mainly used for power generation and
can also be used as a secondary raw coal for coke production. Coking coal is
the primary raw coal for coke production.
The first phase of the consolidation will be the expansion of two coal
mines from current annual capacities of 300,000 metric tons and 150,000 metric
tons to 600,000 metric tons and 300,000 metric tons, respectively. Since the
overall construction conditions of the two target coal mines are good, we
expect that the coal mines’ production capacities can be expanded without
disrupting the mines’ current mining operations.
At present the Company is negotiating with the owners of the eight coal
mines on the acquisition or merger.
“We are committed to restructuring and consolidating these eight coal
mines in Pinglu County and plan to complete all these activities within three
years,” commented Mr.
finalizing our strategic plans, balancing our efforts to maximize our return
on investment and to ensure the safety of the consolidation projects.”
About Puda Coal Inc.
Puda Coal, through its subsidiaries, supplies premium high grade
metallurgical coking coal used to produce coke for steel manufacturing in
coking coal capacity. The Company has recently moved upstream into coal mining.
In
18% of Jianhe Coal. In
Company’s plan to consolidate eight coal mines in Pinglu County,
Province
supplies nearly 50% of
http://www.pudacoalinc.com .
FORWARD-LOOKING STATEMENTS
The information contained herein includes forward-looking statements.
These statements relate to future events or to our future financial
performance, and involve known and unknown risks, uncertainties and other
factors that may cause our actual results, levels of activity, performance, or
achievements to be materially different from any future results, levels of
activity, performance or achievements expressed or implied by these forward-
looking statements. You should not place undue reliance on forward-looking
statements since they involve known and unknown risks, uncertainties and other
factors which are, in some cases, beyond our control and which could, and
likely will, materially affect actual results, levels of activity, performance
or achievements. Any forward-looking statement reflects our current views with
respect to future events and is subject to these and other risks,
uncertainties and assumptions relating to our operations, results of
operations, growth strategy and liquidity. For example, our plan to acquire
and consolidate coal mines and to complete the three phases of coal mine
consolidation in three years, and the estimates with respect to the size of
the mining areas, the reserve and the production capacity are subject to,
among other things, the risks and uncertainties relating to the market and
geological condition, due diligence, negotiation for definitive agreements,
etc. which are beyond our control, as well as our management’s ability and
capacity to execute our coal mine acquisition strategy and manage the coal
mine operations. We assume no obligation to publicly update or revise these
forward-looking statements for any reason, or to update the reasons actual
results could differ materially from those anticipated in these forward-
looking statements, even if new information becomes available in the future.
For more information, please contact:
Investor Relations Contact:
Crocker Coulson, President
CCG Investor Relations
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Elaine Ketchmere, VP of Financial Writing
Tel: +1-310-954-1345
Email: elaine.ketchmere@ccgir.com
Web: http://www.ccgirasia.com
Company Contact:
Laby Wu, Chief Financial Officer, Director of
Investor Relations
Puda Coal, Inc.
Tel: +86-10-6439-2405
Email: labywu@gmail.com
Web: http://www.pudacoalinc.com
SOURCE Puda Coal, Inc.