L&L said the contracts came to 700,000 tons of coal, made up of 300,000t from an operation in China, sold over a 12-month period through its KMC subsidiary, and another 400,000t of US coal when it is available.

The two companies held a contract signing ceremony last Thursday during an investors visit event at the L&L China operational headquarters in Kunming.

KISC, with 30,000 employees, is the largest iron and steel producer in Yunnan Province, reporting more than $US2.6 billion in assets and more than $1 billion in revenues last year.

The company exports steel products to Germany, Japan and Singapore.

"We are very pleased to extend our sales with KISC and look forward to continuing our long-term relationship with Yunnan's largest iron and steel producer," L&L vice-president Ed Moy said.

In early February, L&L signed an exclusive rights agreement to market coal from the Bowie underground mine in Colorado for export to China, Japan, Korea and Taiwan.

The deal for the longwall operation’s super-compliant coal was made February 4 and gives L&L rights in the region for 18 months. Should sales targets be achieved, the operator will have the option to extend the agreement.

L&L projects about 500,000t of coal will be available in 2011, and at least that much in 2012. The tonnage should be shipped to the Zhanjiang Port in China’s Guangdong Province as well as other Asian port facilities.

Last December, L&L provided a secured bridge loan to Bowie Resources for the operation of its longwall mine, which was idled earlier in 2010 pending financing.

The agreement provided Bowie with initial funding, in tranches, of up to $3 million in loans to be used for ongoing operations. The loans had a 9% interest rate per annum and gave L&L the option to acquire up to a 9% equity interest in Bowie at nominal costs.

L&L shares co-senior status with Bowie's only other secured creditor, GE Energy Financial Services.