L&L Energy to Operate a New Coal Washing Facility
SEATTLE, July 10, 2012 /PRNewswire/ — L&L Energy, Inc. (“L&L”), a U.S.-based company with a five-year track record of profitable coal operations in China, has reached an agreement with HunTai Coal Ltd. (“HunTai”) in Yunnan Province to operate and manage HunTai’s newly built 600,000-ton-capacity washing plant. L&L will receive a management fee for operating the plant and can earn revenues from wholesaling the washed coal.
L&L’s TaiFung Coal Ltd. (“TaiFung”) subsidiary and HunTai entered into the agreement on July 10. HunTai, currently in trial operation, will expand L&L’s coal washing operation in the region, providing the Company with further recognition as an industry leader. The agreement is expected to generate approximately $63 million of additional wholesale revenue and $5.9 million in net income, based on coal pricing of $160 per ton. Additionally, L&L will earn a management fee of $0.5 million for the next 12 months of operation.
The HunTai coal washing plant is built near its targeted customer, Yunnan Coal Energy Inc., which requires approximately 3 million tons of washed coking coal each year.
Ed Moy, L&L Vice President and Director, commented, “L&L is recognized as a leader in the coal washing industry. Through management innovation, the Company is able to synergize its expertise with other entities to produce more revenue and profit.”
Forward Looking Statements
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 that involve a number uncertainties. Actual results of the future events described in this document could differ materially. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
L&L Energy, Inc.
SOURCE L&L Energy, Inc.