(EnergyAsia, August 7 2012, Tuesday) — L&L Energy Inc, a US-based company with coal operations in China, said it recently signed a letter of intent with AVIC Sichuan Coal Logistics Co Ltd to jointly explore business opportunities in two of western China’s largest cities.

As part of the agreement, AVIC Sichuan will share its customer base, logistics network, financial capabilities and market intelligence with the Seattle-based Nasdaq-listed company in developing opportunities in Chongqing city (population 28 million) and Chengdu city (population 14 million).

AVIC Sichuan is headquartered in Chengdu, a major economic and transportation centre serving western China, and has a strong coal network in Chongqing. The company operates primarily in Sichuan Province, one of the country’s most populous provinces, located near L&L’s coal operations in Guizhou province.

The company is a wholly-owned subsidiary of AVIC International Holding Corp, which has 50,000 employees and assets exceeding RMB 100 billion through its aviation, logistics, finance and real estate businesses. (US$1=RMB6.36).

Dickson Lee, Chairman and CEO of L&L, said:

“We are excited to enter a business alliance with AVIC Sichuan, and to expand our business into the large Sichuan market, which needs coal. Working with AVIC Sichuan will help streamline our coal logistics and grow our sales opportunities.”