L&L Energy, a US-based firm with coal mining and distribution businesses in China, has formed a new joint venture (JV) in China's Yunnan province.
The company owns 98% of the JV, called Yunnan L&L Tai Fung Coal Co, which includes a newly established coal wholesale operation and its existing Hong Xing coal washing facility.
The wholesale operation will move 100,000 tons of coal per year adding an estimated $17m in revenues, and the Hong Xing washing facility is being expanded to 600,000 tons annually.
The new JV will generate an approximately $81m in revenue per year to L&L, the company said.
L&L Energy chairman and CEO Dickson Lee said that the JV will utilize the rich local coal resources and market to improve L&L Energy’s foothold in the Yunnan Province.