Puda Coal (NYSE:PUDA) Approved as Coal Mining Company

Puda Coal (NYSE:PUDA) has received permission from the Shanxi government to move beyond coal washing to being a full-fledged coal mining company.

Starting on January 1, Puda will be able to produce coal at its Da Wa mine.

The company has also recently acquired new thermal mines, which when fully operational, will be able to produce about 2 million tons of coal annually.

Brean Murray Carret & Co. raised their price target on Puda as a result of the changes, although noting they're lowering their EPS estimates for full year 2011 from $2.04 to $1.83 on acquisition expenditures.

Puda closed Monday at $11.98, up $0.05, or 0.42 percent. Brean has a price target of $20 on them, raising it from $18.