L&L Energy Signs Subcontract Agreement for ZoneLin Coal Coking Operations
SEATTLE, Feb. 5 /PRNewswire-FirstCall/ — L&L Energy, Inc. (OTC Bulletin Board: LLEN) (“L&L”), a U.S. coal operator serving China’s coal market, announced today that it has subcontracted through its subsidiary, L&L Yunnan Tianneng Industry Co., Ltd. (“TNI”), the operations of the ZoneLin Coal Coking (“ZoneLin”) located in Yunnan Province of China.
Under a fixed fee of $1,000,000 for five years the agreement allows TNI to operate ZoneLin’s 150,000-ton annual coking facility, provide the necessary working capital, and collect revenue of the facility. Additionally, TNI is the exclusive provider of advisory and consultancy services to ZoneLin. The coking revenue, profit, or loss will be consolidated in L&L financial statements as a variable interest entity. L&L expects the agreement to generate approximately $28 million 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, CEO of L&L, said: “We’re 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.”
About L&L Energy
Founded in 1995 and headquartered in Seattle, L&L (http://www.LLenergyInc.com) focuses on serving the energy market in China. Through its subsidiaries, it operates profitable coal mines, coal wholesale, coking, and coal-washing facilities in Yunnan and Guizhou Provinces.
The statements contained words that are not historical fact, including but not limited to, statements using terms such as “anticipate,” “expert,” “intend,” “plan,” “could,” “should,” and other expressions, including statements related to market trends and 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.
Contacts: Dave Gentry RedChip Companies, Inc. (800)733-2447, Ext.104 firstname.lastname@example.org John Baldissera BPC Financial Marketing (800)368-1217 SOURCE: L&L Energy, Inc.
SOURCE L & L Energy, Inc.