TAIYUAN, China, Feb. 3 /PRNewswire-Asia-FirstCall/ -- Puda Coal, Inc.
(OTC Bulletin Board: PUDC) (“Puda Coal” or the “Company”), a supplier of China’s high grade metallurgical coking coal used to make coke for the purposes of steel manufacturing, today announced that the Company signed a letter of intent with a local county government located in Shanxi Province (“the County”) to consolidate the County’s six coal mines (“the coal mines”) and construct a coal gangue power plant.
According to the letter of intent, the County will apply for project approval from the Shanxi provincial government for consolidation of the coal mines. Upon receiving provincial approval, Puda Coal will work with the County to consolidate and restructure the six coal mines. Pursuant to the letter of intent, after the County has obtained all supporting documents related to the gangue power plant, Puda Coal will work with the County to construct a 2x135 MW coal gangue power plant. Both the consolidation of the coal mines and construction of the power plant will comply with the Shanxi provincial government’s mandate to accelerate the pace of consolidation and restructuring of coal mining enterprises.
Following approval of the project from the provincial government, the Company will invest the funds required to increase production capacity of the mines after consolidation and will also provide the funds necessary to construct the coal gangue power plant. Details related to timeframe to obtain the provincial government approval and the requirements and conditions for any binding agreement for detailed coal mine consolidation to be executed are not yet available.
“We are excited about this opportunity and view this letter of intent with the County government as a step forward in our efforts to enter into the coal mining industry and extend our reach along the coal value chain,” said Mr. Liping Zhu, CEO and President of Puda Coal. “We look forward to the opportunity to leverage our experience in the coal industry to consolidate and fully utilize the mines and to construct a coal gangue power plant to help serve China’s increasing demand for energy.”
About Puda Coal, Inc.
Puda Coal, through its subsidiaries, supplies premium grade coking coal to the steel making industry in China for use in making coke. The Company currently possesses 3.5 million metric tons of annual coking coal cleaning capacity. Shanxi Province provides 20 - 25% of China’s coal output and supplies nearly 50% of China’s coke.
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 as well as local and global economic and financial conditions. For example, the entry into of a binding agreement is subject to various conditions and requirements of the County government, which we may not be able to satisfy, and our management’s ability to successfully consolidate and increase output at the mines and construct a coal gangue power plant, are subject to, among other things, the risks and uncertainties relating to the market condition beyond our control. We will not, and 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
Web: http://www.ccgirasia.com
Company Contact:
Wenwei Tian, Chief Operating Officer,
Director of Investors Relations
Puda Coal, Inc.
Tel: +86-351-228-1302
Email: awtian@yahoo.com
Web: http://www.pudacoalinc.com
