US-based L & L Energy, with coal mining and distribution businesses in China, has signed a long-term sales contract with Guodian Yongfu Power Generation Company, a utility company located in Guangxi Province, China.
The deal involves L&L to provide 20,000 tons of thermal coal per month over the next eight months to Yongfu Power and has an option for further extension after the project period.
The average sales price under the agreement will be nearly $120 per ton, which is anticipated to generate $19m in revenues, L & L Energy said.
Yongfu Power is a subsidiary of China Guodian Corporation, which owns over 180 power plants covering 31 provinces with $100bn assets.
This is the second sales agreement that L&L has secured in the past two weeks, totaling 400,000 tons of coal.