L&L said discussions would now commence around the deal for the 150,000 ton per annum mine, which is about 60 miles from the producer’s existing operations.
The active mine has been in operation since 2007 and contains proven coal reserves of about 31 million tons.
As the new mine is part of its expansion plan, L&L will add about $US19 million in revenue to the mine’s bottom line this year, assuming average coal prices of $130/t. The company also said the acquisition would aid it in meeting China’s energy demand.
L&L expects talks will be completed around December this year.
"Through the introduction of Tony Li, president of L&L's KMC subsidiary, we are working together with the mine to combine our coal mining resources and profits,” president and chief executive Dickson Lee said.