The Washington-based Chinese coal producer said the Weishe mine produces a high quality, low sulphur anthracite coal which is typically priced at $158/t.
By mechanising the mine, which will also improve its safety, Weishe is expected to ramp up from its forecasted rate of 124,000t per annum.
L&L said the mine hosts 19 million tons of reserves over an area of 1.8sq.km and is expected to provide it $3.75 million of cashflow in the 12 months ending April 30, 2013.
“With the recently established Hong Gou operational office in Guizhou, the government's approval of our new wholesales license, and now the addition of the Weishe Mine, we are positioning ourselves well to fully execute the two one million tons wholesale agreements negotiated in the fall of 2011," L&L chairman and chief executive officer Dickson Lee said.
"The management team at the Weishe mine is very strong and will be an excellent addition to L&L as we scale at a faster pace. To share in our excitement, we invite investors to visit our new operations this summer."
