(EnergyAsia, July 12 2012, Thursday) — US-based L&L Energy Inc said it has agreed to operate and manage a newly built 600,000-ton-capacity washing plant in China’s Yunnan province for owner HunTai Coal Ltd.

The Seattle company which claims a five-year track record of profitable coal operations in China said the agreement could generate US$63 million of additional annual wholesale revenue and US$5.9 million in net income, based on coal pricing of US$160 per ton.

L&L expects to earn the revenues from the management fee accruing to subsidiary TaiFung Coal Ltd for operating the plant as well as sale of the washed coal.

HunTai’s coal washing plant is built near its targeted customer, Yunnan Coal Energy Inc, which requires approximately three million tons of washed coking coal each year.

Ed Moy, an L&L vice president and director, said:

“L&L is recognised as a leader in the coal washing industry. Through management innovation, the company is able to synergise its expertise with other entities to produce more revenue and profit.”