L&L Secures Super Compliant Coal from Bowie Mine for Export to Chinaadmin
L & L Energy, Inc., a U.S.-based company founded in 1995 with coal mining and distribution businesses in China, announced today that it has secured the exclusive right to market super compliance coal from the Bowie Mine (Bowie) for export to China, Taiwan, Japan and Korea.
The agreement signed on February 4, 2011 gives L&L the exclusive right to market this coal in these regions for 18 months with the option to extend the agreement if sales targets are achieved. The company expects approximately 500,000 tons of high quality coal to be made available in 2011, and at least 500,000 tons to be available in 2012. The coal is targeted to be shipped to the Zhanjiang Port in the Guangdong Province of China, as well as other port facilities in Asia. L&L announced an agreement with Zhanjiang Port on January 20 to conduct a feasibility study working towards establishing a large coal blending and distribution center inside the Harbor. Shipments are expected to begin in 4 – 5 months.
Dickson Lee, CEO and Chairman of L&L, commented, “We are pleased by this opportunity to start exporting extremely high quality US coal to our Chinese customers. This is an important milestone of our progress as we continue to strive toward our goal of becoming a global coal provider.”
The Paonia, Colorado based Bowie Mine has been producing coal since 1997. Bowie produces high quality (“super compliance”) thermal coal with specifications of approximately 12,000+ Btu/lb (6668kcal/kg), low sulfur at approximately 0.5% and low ash between 8% and 10%.