March 19, 2010 (FinancialWire) — Puda Coal, Inc. (AMEX: PUDA) said it plans to acquire and consolidate four coal mines located in Huozhou County, central Shanxi Province, in China.

The company said that, under a government policy allowing mergers and consolidations of coal mining companies in Shanxi Province, larger coal production enterprises are given the opportunity to acquire, consolidate and restructure smaller coal mines through mergers, acquisitions and asset or share transfers.

On September 30, 2009, Shanxi Puda Coal Group, a 90% subsidiary of Puda Coal, was appointed by the Shanxi provincial government as a consolidator of eight thermal coal mines located Pinglu County in southern Shanxi Province.

Shanxi Coal said it recently received a new approval by the Shanxi provincial government to consolidate four additional coking coal mines into one coal mine. After the completion of the consolidation, the Jianhe Project is expected to increase the total annual capacity from 720,000 metric tons to 900,000 metric tons, according to the Shanxi provincial government's approval.

The target coal mines are around 200 kilometers south of Puda Coal's headquarters and 50 kilometers from the company's Lingshi coal washing plant. The coal in that area is fat coal and coking coal. The fat coal can be used as raw coal for making cleaned coal or as high quality thermal coal for power plants. Coking coal is used to make coke.

China-based Puda Coal, through its subsidiaries, supplies metallurgical coking coal used to produce coke for steel manufacturing in China.

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