Advancing an initiative outlined in January to focus on large mining operation acquisitions in north China with annual production of 1 million tons or more, L&L identified two targets fitting its criteria.

The properties were located with the help of L&L directors Syd Peng and Jingcai Yang.

It has formed a strategic alliance with the Tianjin Materials and Equipment Company subsidiary to help it complete one of its target takeovers.

Tianjin will contribute most of the initial funding for the transaction and L&L will operate and pre-sell coal from the property once the pair’s controlling interest is obtained.

The private logistics company will also provide additional funding and benefit from future transactions.

“With such a strategic alliance in place, I feel confident we will execute an acquisition of a large mining operation before the end of the calendar 2013,” chairman and chief executive officer Dickson Lee said.

“We have been working to identify a mutually beneficial project with Tianjin Fuhao since August of 2011 and I look forward to utilizing all three parties' resources to benefit from this acquisition."

L&L also confirmed it was planning to dispose of its Hong Xing washing facility Shezone County, Yunnan Province, one of the smaller coal washing plants in its portfolio.

“Over the past few months, L&L management decided to wind down operations due to increased needs to capital expenditures,” Lee said.

“Management has decided Hong Xing will not be accretive to L&L in the long run and has stopped Hong Xing's washing operations.”

While no potential buyer was identified, L&L said the property would be sold or disposed of to an interested buyer as soon as possible.

In related news, the company announced advisory board member James Schaeffer would join its management team as a director of operations.

In his new seat, Schaeffer will be tasked with helping the company to evaluate energy opportunities in the US.

“[M]anagement believes US operations would improve LLEN's visibility and shareholder value,” officials said.

Schaeffer, a three-decade mining and exploration veteran in the US and Asia, was formerly president of John T Boyd's China operations as well as CEO of a Hong Kong energy company.