Under the alliance agreement, L&L will jointly build facilities with Taggart, allowing both to grow their coal businesses by utilizing the other’s benefits.

Pennsylvania-based Taggart Global is an engineer and constructor of environmentally friendly coal washing and loading plants.

Its clients have included Anglo Coal, Peabody and Shenhua.

According to L&L, Taggart's sales in China are mainly state-owned mining operations as private mines cannot economically support washing and blending infrastructure.

However, it said the coal quality produced from such technology was key for large-scale end users such as the producer’s supply client Datang Power.

“Our board of directors, led by Jingcai Yang, has shown great leadership and teamwork developing this relationship,” chairman and chief executive officer Dickson Lee said.

“The partnership with Taggart will enhance L&L's ability to bridge small coal mines and large end users, further improving our wholesale and logistics platform in line with our consolidation strategy."

Just last month, L&L announced another leg to its already strong relationship with Chinese utility Datang, securing an updated coal sales agreement for more tonnage through next year.

Officials said it entered into the contract on October 15 to sell 360,000 tons, sealing the deal after a successful trial shipment in June.

It has been timed for the higher demand associated with the winter season and will expire in September 2013.

Shipments will begin this month and will increase to a monthly goal of 37,000t in early 2013.