China-based coking coal producer Puda Coal, consolidator of twelve coal mines in Shanxi Province, announced on July 6 that Shanxi Puda Coal Group Co. Ltd (Shanxi Coal), a 90 percent subsidiary of Puda Coal, closed the mining asset transfers with Pinglu County Da Wa Coal Industry Co Ltd and Pinglu County Guanyao Coal Industry Co Ltd on June 25, 2010, representing an aggregate purchase price of $41.7 million.
The Yunchen municipal coal mine authority has given the green light to Da Wa Coal and Guanyao Coal to proceed with mine improvements at their current capacity level.
"The closings of the asset transfers of Da Wa and Guanyao coal mines mark an important milestone in our coal consolidation projects," commented Mr. Liping Zhu, president and CEO of Puda Coal, Inc. He said that the negotiations are continuing with Shanxi government to takeover additional mines in the province.