Through its Chinese subsidiaries, L&L Energy operates profitable coal mines, wholesale coal operations, coking, and coal washing facilities in the Yunnan and Guizhou Provinces of China. The company has been in business since 1995.
The company announced today that it has signed a long-term sales contract with Guodian Yongfu Power Generation Company Ltd., a large utility company located in Guangxi Province. Yongfu Power is a wholly-owned subsidiary of China Giodian Corporation, a Global Fortune 500 company, and one of the five biggest power generators in China. It owns over 180 power plants in 31 provinces.
Under the agreement, L&L Energy will provide 20,000 tons of thermal coal per month over the next eight months to Yongfu Power. Under the terms of the agreement, the average sales price of the thermal coal provided will be approximately $120 per ton which is above the average benchmark price of $115 a ton. This sale is expected to generate about $19 million in revenues for L&L Energy.
This is the second such prominent sales agreement for the company in the last two weeks, totaling 400,000 tons of coal and over $50 million in new revenues. The first contract, executed on April 4, will supply 20,000 tons of coal per month for the next 12 months to Datang International Power Generation Company Ltd., another of China's top five power producers.
For further information about L&L energy and its coal operations, please visit the company's website at www.llenergyinc.com
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