The company will acquire 51% stake in the coal mine and deposit about CNY2m ($314,000) and pay the remaining balance in installments, once a definitive agreement is finalized.
L&L chairman and CEO Dickson Lee said the company is organizing its mining assets in a focused manner, to maximize return to its shareholders.
"The acquisition of the Mine is part of our consolidation strategy in HeZhang County," Lee added.
"We are working with Union Energy and others to identify further opportunities."
L & L has scheduled the production of the mine in the final quarter of 2012 and expects to fully implement it in 2013 and produce low-sulfur, high BTU, anthracite coal.
The company expects to produce the anthracite coal at the approved annual production rate of 300,000 tons on 7.17 million tons of reserves, with potential expansion to 450,000 tons and beyond on reconnaissance resources of 20 million tons.
L & L has previously acquired Weishe Mine from Union Energy which is also located in the HeZhang County.
US-based L & L Energy is a coal mining company.
