Chairman and chief executive officer Dickson Lee said last Thursday L&L was the only American-owned and US publicly listed company in the province, which is undergoing a consolidation that will reduce locally owned mines from 1600 down to 200 or less.

L&L is working with the province’s vice-governor and energy bureau chief, and has been endorsed to take a leadership position in the consolidation. It is also currently working with a large commercial bank with the potential to assist with the financing.

“In an effort to increase mine size and improve production efficiency, the Guizhou Province recently announced a plan to reduce its … locally owned mines to some 40 holding companies,” Dickson said, adding that it is targeting 14 mine acquisitions in the region.

“The government also mandates that total coal production in the province be increased by 40%, equating to 300 million tons per year by 2015.

“L&L's acquisition team has been working hard at the forefront in the consolidation process, which could result in exponential revenue growth.”

Officials said on Wednesday the 14 operations willing to be acquired had signed letters of intent with the company.

International mining expert and company director Dr Syd Peng said he was planning a visit to the Guizhou Province and was eager to help the operator target quality acquisitions.

“We will evaluate each mine's geology and mining operations, emphasizing safety and mechanization,” he said.

“Our goal is to apply a US level of standards to China, which will bring long-term benefit to the company and its shareholders.”

In related company news, L&L announced it re-elected all seven of its directors during the same shareholders meeting, with the individuals receiving 98% of the vote.