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The Chinese government places great value on the coal industry. With coal reserves of over 1,000 billion tons and production of more than 2 billion ton per year, China is currently the world's largest coal producer and consumer. Approximately 97% of coal production is used by China's internal market and this contributes over 70% of the country's primary energy supply. Puda Coal is ideally located in Liulin, Shanxi province, which has the largest reserve base of high quality raw coal in China. Known as the"King of Coal," Shanxi provides 20-25% of China's coal output and supplies nearly 50% of China's coke. According to the 11th Five-Year Plan for the Shanxi Province, the Shanxi government will spend 318.3 billion RMB in order to improve infrastructure such as railway constructions and other related public services and become the main transportation center of coal in China. In the last two years, the Shanxi government has closed a large number of small companies in order to address economic, environmental and safety issues. This resulted in the elimination of over 1,000 coal-related enterprises in the Shanxi province.

 
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