Puda Coal’s subsidiary, Shanxi Puda Coal (Shanxi Coal), entered into coal mining rights and mining assets transfer agreements with Da Wa Coal and Guanyao Coal in Pinglu County during December. Mining premium high grade metallurgical coking coal in China, Puda currently possesses 3.5 million metric tons (mt) of annual coking coal capacity. During September, the Shanxi provincial government appointed Shanxi Coal as a consolidator of eight coal mines in Yucheng City, Pinglu County.
Upon closing of the deal valued at $27.8 million, Puda Coal plans to expand the two coal mines from current annual capacities of 300,000 mt and 150,000 mt to 600,000 mt and 300,000 mt, respectively. The company expects to complete the restructuring projects within a year, without disrupting existing capacity and operations of the coal mines. Both Da Wa Coal and Guanyao Coal have reserves of high quality thermal coal.