L&L Energy, Inc., a coal-mining company founded in the United States in 1995 serving the Chinese coal market, recently announced that the company has subcontracted the operations of ZoneLin Coal Coking located in Yunnan Province of China through its subsidiary, L&L Yunnan Tianneng Industry Co., Ltd. Through its subsidiaries, L&L Energy operates profitable coal mines, coal wholesale, coking and coal-washing facilities in Yunnan and Guizhou Provinces in China.
Under a fixed fee of $1 million for five years, the agreement allows L&L Yunnan Tianneng Industry Co., Ltd to operate ZoneLin’s 150,000-ton annual coking facility, including providing the necessary working capital and collecting revenue of the facility. L&L Energy expects this agreement to generate approximately $28 million in revenue per year, based on a $187 price per ton of coke. The agreement covers a period of five years starting from November 1, 2009, and can be extended by mutual consent.
Dickson Lee, chief executive officer of L&L Energy, Inc., stated, “We are confident that contracting of ZoneLin will increase our revenue and profits. This new development also extends L&L role of becoming a leader in the region.”