TAIYUAN CITY, CHINA, Nov 01, 2005 (MARKET WIRE via COMTEX) --
Puda Coal, Inc. ("Puda" or the "Company") (OTC BB: PUDC), a leading supplier of China's highest grade metallurgical coking coal -- which is used to make coke for the purposes of steel manufacturing -- announced today that it has formally signed a supply contract with Changzhi Iron & Steel Company, Ltd., one of the largest state-owned steel manufacturers in Shanxi Province. Beginning November 1, 2005, Puda will provide Changzhi Iron & Steel with more than 40,000 metric tons (MT) each month or greater than 480,000 MT each year. The contract calls for an annual delivery that is 10 times larger than that of Puda's largest client in 2004, and the 480,000 MT to be delivered exceeds the total of 315,000 MT delivered across all clients in 2004.
While certainly the largest contract to date for the Company, it is but one of several sizable deals inked recently, and is consistent with Puda's strategic growth plan to increase annual processing capacity from today's 500,000 metric tons to 2.7 million metric tons by early 2006. Management believes that this will make Puda the largest cleaned coking coal supplier in terms of capacity and one of the lowest cost coking coal producers in Shanxi Province.
High grade metallurgical coking coal is primarily used to manufacture steel. "This contract represents an important milestone for Puda Coal", said Puda Chairman and Chief Executive Officer Zhao Ming. "We are now very well positioned to capture the intense demand for the high grade coking coal helping fuel China's industrial revolution."
About Puda Coal, Inc.
Puda Coal, Inc., through its affiliates and controlled entities, supplies premium grade coking coal to the steel making industry for use in making coke. The Company currently produces 500,000 metric tons of cleaned coking coal annually, and management believes it is one of the largest coking coal cleaning companies in terms of capacity in Shanxi Province, China. Shanxi Province provides 20-25% of China's coal output and supplies nearly 50% of China's coke.
Posts: 205 | From: ca | Registered: Aug 2005
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I thought this one could have potential tommorow. This contract is bigger than all there sales the year before. The only problem with this one is it has gone up 70 or 80 percent in the last week or two so many apparently knew this was coming. It could sell off tommorow but then again it could also have a nice gain. Ill watch and see how it opens. This is in my opinion a risky one. If I get in ill set my stop loss one tick below the opening price.
Posts: 205 | From: ca | Registered: Aug 2005
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