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SEATTLE (AP) — L&L Energy Inc., which mines and distributes coal in China, said on Monday that it expects to complete its purchase of two new mines in the next 30 days.
The mines are the newly-built LuoZhou and LaShu mines in Guizhou Province in China, near the company's Weishe Mine.
The two new mines produce low sulfur anthracite coal with approximately 34.2 million tons of combined coal reserves, the company said.
L&L said it is structuring the mine acquisition from Union Energy as an equity swap for L&L's coking coal mine and its Zone Lin coking facility. Details are still being worked out. Depending on the final valuation of the various assets, L&L said it may also pay for some of the deal with cash and shares.
Meanwhile, L&L's Weishe mine has ramped up to a rate of 150,000 tons per year, and the company plans to take it to 450,000 tons per year.
The speed-up at Weishe, plus the purchase of the other two mines, will add about one million tons of new coal production for the company, generating about $100 million in new revenue based on current coal prices.
Shares of L&L Energy rose 26 cents, or 13.3 percent, to $2.21 in morning trading Monday. They are up from a 52-week low of $1.30 in mid-May. They traded as high as $3.25 in early February.