The company said Thursday that the agreement calls for the coal to be sold beginning in February and extending through the 2012 calendar year, which will expand a partnership it established in August
L&L and its China subsidiaries will work in tandem to sell and market the coking and thermal coal.
The deal is the second for L&L in a short period of time; earlier this week its DaXing subsidiary signed a similar agreement with China Chengtong Metal Tianjin.
If executed, the sales agreements could bring in combined revenues of US$300 million assuming a price of $150 per tonne.
“Our newly established wholesale operations have hit the ground running by securing two sales contracts representing an aggregate of 2Mt in calendar 2012,” executive vice president Clayton Fong said.
“The wholesale operation is a good compliment to future acquisitions and partnerships. We look forward to working with CCMC and Tianjin Fuhao for many years to come, the synergies and the shared resources will continue to stimulate growth for all three companies.”
L&L also recently announced the establishment of Dashin L&L Coal, a new coal wholesale operation.
The new facility opened November 15 in Hong Gou, Pan County in the Guizhou province.
Dashin L&L Coal is the company’s third coal wholesale operation and the first in Guizhou. The other two facilities are both located in the Yunnan province.
