TAIYUAN, Shanxi, China, June 12 /Xinhua-PRNewswire-FirstCall/ -- Puda Coal, Inc. (OTC Bulletin Board: PUDC) ("Puda Coal" or "the Company"), a leading supplier of China's high grade metallurgical coking coal used to make coke for the purposes of steel manufacturing, today announced that it has signed an asset exchange agreement with Linshi County Jinliao Coal & Chemical Co., Ltd. ("Jinliao Coke") for the acquisition of the Chongjie coal washing plant in Lingshi County, Shanxi province.
Under the terms of the agreement, Puda Coal will acquire a coal washing plant with 1.2 million metric tons ("MT") of annual coal washing capacity from Jinliao Coke. In consideration, Puda Coal will pay Jinliao Coke $6.0 million in cash and transfer its Shanxi Liulin Dongqiang coal washing plant, which is valued at $1.5 million and has 400,000 MT of annual coal washing capacity. The transaction will add 800,000 MT processing capacity to Puda Coal's operations, bringing total annual coal washing capacity to 3.5 million MT.
The new plant is located in Lingshi County, one of Shanxi's largest high grade raw coal reserves, and utilizes advanced dense medium coal washing technology to produce high grade cleaned coking coal. Puda Coal plans to implement its advanced mix control technology and management system at the Lingshi plant in order to enhance its operational efficiency. The Company will commence coal washing operations at the new plant immediately upon the closing of the transaction, which is expected to be completed before the end of June 2007.
"Our expanded coal washing capacity of 3.5 million MT, solidifies Puda Coal's position as the largest cleaned coal processor in the Shanxi province, and allows us to meet the large orders requirements of steel manufacturers and coking companies," said Zhao Ming, Puda Coal's Chairman and Chief Executive Officer. "Major infrastructure projects continue to drive demand, and we intend to further increase capacity to 4.0 million MT by year end."
About Puda Coal, Inc.
Puda Coal, through its affiliates and controlled entities, supplies premium grade coking coal to the steel making industry for use in making coke. The Company currently possesses 3.5 million metric tons of annual coking coal cleaning capacity, and management believes it is the largest coking coal cleaning company in terms of capacity in Shanxi Province, China. Shanxi Province provides 20 - 25% of China's coal output and supplies nearly 50% of China's coke.
Forward-Looking Statements
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For more information, please contact:
Investor Relations Contact:
Crocker Coulson, President
CCG Elite
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Company Contact:
Wenwei Tian, Director of Investor Relations
Puda Coal, Inc.
Tel: +86-351-228-1302
Email: awtian@yahoo.com