(EnergyAsia, February 6 2012, Monday) — Seattle, US-based coal miner L&L Energy Inc said it has bought a 51% controlling stake in a coal mine in Guizhou province in China for about US$16.2 million in stock.

With reserves of around 19 million tons, the Weishe mine could add 124,000 tons to L&L’s production, US$19.6 million in revenue and earnings of US$9.8 million for the year ending April 2013.

L&L said it plans to expand the mine to its design capacity of 450,000 tons over the next few years. Previously fully-owned by Union Energy, Weishe in Hezhang produces high quality, low sulphur, anthracite coal.
 
Syd Peng, a L&L board member and mine expert, said: “I welcome the new Weishe mine, which is the first of many new mines we are targeting to upgrade our mining portfolio for better safety and mechanisation.”

Po Shui, owner of Guizhou-based Union Energy, said:

“I believe in L&L and am pleased to take common shares as payment. I also look forward to the possibility of joint venturing with L&L on two other Union Energy mines, one of which is scheduled to begin producing in the spring and the other in the fall of this year. 

Dickson Lee, L&L Energy’s chairman and CEO, said:

“L&L Energy has been focused on executing our plan for the Guizhou consolidation.  With the recently established Hong Gou operational office in Guizhou, the government’s approval of our new wholesales licence, and now the addition of the Weishe Mine, we are positioning ourselves well to fully execute the two one millions ton wholesale agreements negotiated in the fall of 2011.”