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The contract requires L&L to provide 20,000t of thermal coal per month over 12 months to Datang Utility’s HeShan power plant in Guangxi province.
Total revenue of over $30 million is expected using an average sales price of $130 per ton.
L&L chairman and chief executive Dickson Lee said the agreement, along with a logistics deal with AVIC International last month, marked progress in the company’s expansion ambitions within China.
“This is the first step in expanding our coal network beyond Yunnan and Guizhou to other South China provinces,” he said.
“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.”
L&L’s China-based activities have escalated in recent months with the acquisition of a majority stake in a Guizhou province arthracite complex last January and the recent election to the board of Chinese coal expert and Shenhua Group veteran Jingcai Yang.
