China-based coking coal producer Puda Coal, consolidator of twelve coal mines in Shanxi Province, announced on December 15 that Shanxi Puda Coal Group Co. Ltd (Shanxi Coal), a 90 percent-owned subsidiary of Puda Coal, has received approval from the Shanxi Yuncheng Municipal Coal Mine Industry Bureau to commence construction of the designed production expansion of Shanxi Pinglu Dajinhe Coal Industry Co., Ltd, a mine acquired by the company.
Construction work on the production expansion of Dajinhe Coal was also approved to begin on January 1, 2011, to be concluded within eight to 12 months.
The mine has total recoverable reserves of 10.8 million metric tons and its annual production capacity is expected to expand from 300,000 metric tons before the construction to 600,000 metric tons after the construction and production expansion. The company estimates that Dajinhe Coal will produce approximately 150,000 to 290,000 metric tons of thermal coal during the construction period.