Pan County Endorses L&L Participation in its Coal Reorganization
SEATTLE, Oct. 17, 2011 /PRNewswire/ -- L & L Energy, Inc. (Nasdaq: LLEN) ("L&L"), a U.S. based company since 1995 with coal mining and distribution businesses in China, today announced It has received a letter from the local Pan County government (Pan Shan) supporting L&L's participation in the 5-year coal consolidation and reorganization plan which starts this year in Guizhou Province. Pan County, where much of the metallurgical coal is located, is the "coal capital" of Guizhou Province.
In the letter, dated October 13, 2011 (letter numbered PS-2011-136), the Pan County government welcomed L&L's participation and confirmed that the consolidation and reorganization of existing mines is a healthy policy for the coal industry's growth. The Pan County government states it will actively coordinate with L&L to implement its policy. The government intends to select and assist a small group of companies with operational and management skills, developing these competitive companies into large scale operators. The Guizhou Province government intends to consolidate most of the approximately 1,600 existing mine operators into roughly 50 or less holding companies. The goal of the consolidation effort is to improve mining resource management and to increase provincial coal production from 125 million tons per year to 300 million tons by 2015. While official consolidators have not yet been named, L&L, on September 6, 2011, received a letter of support from Guizhou Energy Bureau and, on September 9, 2011, the L&L management team was received by Vice Governor Sun and officials of the China Development and Reform Commission (CDRC).
L&L in is the only U.S.-based and NASDAQ listed company operating in Guizhou. L&L operates two mines in Pan County. L&L established an office in the capital of Guizhou, Guiyang City, in May 2011 and opened a field office in Pan County last week. Additionally, the Company received initial approval for a coal wholesale license in Guizhou, expanding its coal wholesale operations from Yunnan and growing its coal network by establishing business relationships with more mining operators
Dickson Lee, Chairman & CEO of L&L stated, "We are pleased to have received this encouraging letter from the Pan County government which adds to the support we previously received from the provincial government. The Guizhou government is in the process of selecting experienced mining operators to consolidate existing mines. Each consolidator will target 5-6 million tons of annual coal mining capacity. If selected, L&L would increase its mining revenues more than 500% over the next few years. Dr. Syd Peng, a world renowned coal geologist and L&L Director has been leading our evaluation of acquisition targets and is departing to China this week. "
A copy of the letter of Pan County People's Government is available at the L&L website.
Forward-Looking Statements
The statements contained words that are not historical fact, including statements related to Company's future performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties. Actual results of the future events described in this document could differ materially due to numerous factors and other made by the company filing with the Securities and Exchange Commission. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements
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