L&L Energy signs with ZoneLin Coal Coking Operations

L&L Energy, Inc., 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., the operations of the ZoneLin Coal Coking  located in Yunnan Province of China.

Under a fixed fee of $1MM 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.

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