Frequent Asked Questions
Question 1. Why doing energy business in China?
Answer: Contrary to the US, China has little petroleum and natural gas but has a lot of coal, thus China is the
largest coal user. China is growing however is short of energy. Currently, approx 71% of energy is coming from
coal in China. L&L with analytical skills has identified the energy shortage in 2003 and participate in the coal
(energy) business in China since 2006.
Question 2. What is Coal?
Answer: Coal is a non-renewable fossil fuel formed in ecosystems where plant remains were preserved by
water and mud from oxidization and bio-degradation, thus sequestering atmospheric carbon. Coal is a readily
combustible black or brownish-black rock. It is a sedimentary rock, but the harder forms, such as anthracite
coal, can be regarded as metamorphic rocks because of later exposure to elevated temperature and pressure.
It is composed primarily of carbon and hydrogen along with small quantities of other elements, notably sulfur. It
is the largest source of fuel for generation of electricity world-wide, as well as the largest world-wide source of
carbon dioxide emissions, which according to the IPCC, contribute to climate change and global warming. In
terms of carbon dioxide emissions, coal is slightly ahead of petroleum and about double that of natural gas.
Coal is extracted from the ground by coal mining, either underground mining or open pit mining (surface mining).
Question 3. What is L&L Coal Operational background?
Answer: In summary, L&L Coal Operations consist of both KMC wholesale and 2 majority controlled coal
operating mines.
1. KMC wholesaling has a 12 year operational track records. L&L acquired a 60% interest in KMC in 2006
and the received remaining 40% of control in 2007, thus the company has 100% control of KMC operations
since 1/2008.
Dickson Lee is Chairman of KMC, with the following 4 L&L shareholders to operate KMC business:
- Tony Li
coal wholesale experience. Tony is primarily focus on coal wholesale operations.
- KC Au
State Senator, who lived in the US for many years. She has been in the coal metal industry in Yunnan for 30
years, and has access to governments’ policies.
- Kevin Lai Shaw-Tong
experience and has many business connections in coal and steel both in Yunnan and GuangDong.
- Francis Zhang
operations of KMC.
KMC has a team of experienced managers, including Chinese CPA, UK studied manager, and coal managers to
implement senior executive instructions.
2. Mine operations: L&L controls majority equity of 2 operating coal mines (DaPuAn Mine, Yuan Shan Mine)
and other mine drilling activities in China.
L&L will hire qualified mine managers to operate the mine. As the mines are located in a coal rich region, there
are many qualified managers available to be recruited.
Question 4. What are the Coal Operations Safety procedures?
Answer: L&L has and will continue implement an extensive approach to enforce mine safety including:
1. Latest technology and equipment
- CCTV cameras
- Gas monitors
- Steel frames to support the shaft
- Circular excavating machines
- Ventilation designs
- Aggressive degassing techniques
2. Training, hazard recognition and remediation
- Daily training on safety topics
- Informal safety meetings
- Monthly and annual refresher
- Miners given authority to shut down unsafe work areas
- Eight-hour shifts for miners
3. Safety Incentives
- Monthly, quarterly and annual safety bonuses for meeting individual, team and operation safety
performance goals.
4. Compliance
- Compliance with all rules set by the authorities to ensure safety of mines
- Documentation of compliance
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