On Wednesday the miner said that the agreement would allow it to jointly utilize AVIC’s platform, wholesale and railroad network to market between 1 and 2 million tons of coal this year.

Should the agreement be executed and assuming a coal price of $US150 per ton, the deal could realize revenues exceeding $150 million.

Guizhou-based AVIC is the coal arm of parent company Aviation Industry Corporation of China International, which is currently investing in the development of a coal trading and logistic system throughout the province.

AVIC plans to work with L&L to establish a strong supply chain management system that will be a foundation to the companies’ development strategies.

It will also help to grow domestic and international markets with mutual benefit and development and will link the two as Guizhou’s coal consolidation process continues.

“L&L is upgrading its operations from dealing with individual proprietors to working with large institutions in China's coal industry,” chairman and chief executive officer Dickson Lee said.

“After entering into joint MoUs [memorandums of understanding] with two large institutions, including China Chengtong Metal Corporation, we are able to further improve operations with help from AVIC Logistics' resources and network.”

Late last year, L&L Energy announced another long-term joint sales agreement for the marketing and sale of 1 million tonnes of coal with its strategic partner Tianjin Fuhao Industrial.

Expanding a partnership it initially formed in August 2011, the deal called for the coal to be sold throughout this year, with L&L and its China subsidiaries working in tandem to sell and market the coking and thermal coal.

Also in December, the operator’s DaXing subsidiary inked a similar agreement with China Chengtong Metal Tianjin.

L&L announced the establishment of Dashin L&L Coal, a new coal wholesale operation, last year in Hong Gou, Pan County in the Guizhou province.