Corporate Headquarters in Taiyuan City, Shanxi Province

Puda Coal, Inc., through its operating subsidiary, Shanxi Puda Coal Group Co., Ltd., specializes in providing premium grade cleaned coking coal to the steel manufacturing industry for the use in making coke in China. Headquartered in Taiyuan City in the Shanxi Province, the Company currently has three coal washing facilities with annual coal washing capacity of 3.5 million metric tons. Shanxi Province provides 20-25% of China's coal output and supplies nearly 50% of China's coke.

There are two coal cleaning processes predominate in the industry: dense medium (DM) separation and JIG washing. Currently, 56% of the raw coal washed in China is processed by JIG washers, 26% by DM separation, 14% by froth flotation and 4% by other processes.

Puda Coal utilizes JIG washing, which is widely perceived to be a simpler and lower-cost option than DM separation. JIG washing is a water-based process that relies on the pulsation of water through the particle bed to stratify particles of different density. However, JIG washing requires consistent water supply which restricted its usage in China. Puda Coal's cleaned coal is of a higher quality than its peers, containing less than 0.6% sulfur compared to 0.8% - 1.0% sulfur for other cleaned coked coal on the market.

Puda Coal sells its cleaned coal through a direct sales force that markets directly to its customers. Puda Coal's primary customers are coking companies that supply steel mills and steel mills with their own coking facilities. Primary geographic markets include:Shanxi Province, Inner Mongolia Autonomous Region, Hebei Province, all of which are accessible by rail lines, which is the most cost effective method for coal transport.