|This article is part of the CoalSwarm coverage of China and coal|
Puda Coal, through its operating subsidiary, Shanxi Puda Coal Group Co., Ltd., provides "cleaned" coking coal to steel manufacturing industries in China. Headquartered in Taiyuan City in the Shanxi Province, the Company has three coal washing facilities with annual capacity of 3.5 million metric tons. Puda Coal's primary customers are coking companies that supply steel mills and steel mills with their own coking facilities, and their primary geographic markets include Shanxi Province, Inner Mongolia Autonomous Region, and Hebei Province. Shanxi Province provides 20-25% of China's coal output and supplies nearly 50% of China's coke. In November 2010, Puda Coal announced third quarter revenue increased 60.4% over the year to $90.0 million, with sales increasing 30.7% over the year to 651,000 metric tons (MT).
The Company is in the process of adding coal mining operations to its business in Shanxi Province. On September 30, 2009, Shanxi Coal, a 90% indirect subsidiary of the Company, was appointed by the Shanxi provincial government as an acquirer and consolidator of eight thermal coal mines in Pinglu County in southern Shanxi Province. Shanxi Coal received another approval by the Shanxi provincial government to consolidate four additional coking coal mines into one coal mine in Huozhou County. In December 2010, Shanxi Coal entered into coal mining rights and mining assets transfer agreements with three coal mines located in Pinglu County, Shanxi Province: Pinglu County Anrui Coal Industry Co., Ltd., Pinglu County Chuntouao Coal Mine and Pinglu County Xiapingcun Coal Mine, bringing the total number of Puda coal mines to fifteen.
Puda Coal Inc. is being sued by securities purchasers over allegations that the company violated securities laws. An April 2011 press release is quoted as saying: "The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements to investors by failing to disclose that the Company’s Chairman, Ming Zhao, had transferred ownership of Puda’s operating entity, Shanxi Puda Coal Group Co., Ltd., to himself, thereby rendering Puda an empty shell company."
Puda Coal Inc.
CFO and Director of Investor Relations Laby Wu
Articles and resources
Related GEM.wiki articles
- "Puda Coal" Puda Coal, accessed November 2010.
- "Puda Coal Announces Strong Third Quarter 2010 Results" MarketWatch, Nov. 15, 2010.
- "Puda Coal Signs Agreements to Acquire Remaining Coal Mines under Pinglu Project Phase II" PR Newswire, January 3, 2011.
- "Milberg LLP Files Class Action Lawsuit Against Puda Coal" resourceinvestingnews.com, April 26, 2011.
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