China-based coking coal producer Puda Coal, consolidator of twelve coal mines in Shanxi Province, announced on November 15 that Shanxi Puda Coal Group Co. Ltd (Shanxi Coal), a 90 percent subsidiary of Puda Coal, has received approval from the Shanxi provincial government for the comprehensive Coal Mines Geological Technical Report for Pinglu county's Da Wa Coal Industry Ltd submitted by Shanxi Coal Geology Company, an independent coal resource geological company.
Pursuant to Shanxi Province's coal mine consolidation program, consolidators are required to do exploration for the reserves of the assigned target coal mines and submit geological technical reports to Shanxi Province's technical reviewer. The report prepared by Shanxi Coal Geology Company lists detailed information regarding Da Wa Coal's geology, seams, characteristics, engineering, exploration, environmental factors and coal reserves.
On November 3, 2010, the report in question was approved by the reviewer of Shanxi provincial government after two rounds of comments. The company acquired the mining assets, including the physical assets and mining rights, of Da Wa Coal in May 2010. The purchased mining assets of Da Wa Coal have been placed in a new project company named Shanxi Pinglu Dajinhe Coal Industry Co., Ltd.
According to the report, the available reserves of Da Wa Coal total 10.8 million metric tons.