L&L Signs Agreement To Provide 240,000 Tons Of Coal To Large Utility Company
Seattle, WA /PRNewswire/ -- L & L Energy, Inc. (NASDAQ: LLEN ) ("L&L" or the "Company"), a U.S.-based company since 1995 with coal mining and distribution businesses in China, has signed a long-term sales contract with Datang International Power Generation Co., Ltd. ("Datang Utility"), a large, state-owned utility company based in China, to provide thermal coal for its HeShan power plant.
Under the agreement, L&L's DaXing wholesale subsidiary in Guizhou Province will provide 20,000 tons of thermal coal per month over 12 months to Datang Utility's HeShan power plant in neighboring Guangxi Province. Using an average sales price of $130 per ton, the contract is expected to generate approximately $31 million in revenues.
Datang Utility is one of China's largest power generation groups, with more than 100 subsidiaries in over 18 provinces throughout China. In 2011 Datang Utility's had an operating revenue of approximately $11.5 billion dollars. Dickson Lee, Chairman and CEO of L&L, stated, "We are pleased to sign this sales contract with Datang Utility. This is the first step in expanding our coal network beyond Yunnan and Guizhou to other South China provinces. We will work with our new strategic partner, AVIC International, to seek additional wholesale opportunities in Guangxi as well as other neighboring provinces. Our new customer is a well-known, reputable organization with a wide-reaching network, and this contract aligns with our efforts to build business relationships with large institutions. We look forward to working with them on a continued basis going forward."
The statements contained words that are not historical fact, including statements related to Company's future performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties. Actual results of the future events described in this document could differ materially due to numerous factors and other made by the company filing with the Securities and Exchange Commission. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements
SOURCE L & L Energy, Inc.