Consol Energy has sold its industrial supply subsidiary, Fairmont Supply Co., for an undisclosed amount, the Canonsburg company said in its fourth-quarter earnings statement.
Fairmont sells mining, drilling and industrial supplies and has 27 customer service centres throughout the US, according to Consol's most recent 10-K. Additionally, Fairmont provides supply procurement and management services.
Consol was a Fairmont customer; its coal and natural gas divisions accounted for 37% of Fairmont's sales.
The buyer of Fairmont has not yet been identified.
Fairmont was part of what Consol's considers its "other" category of assets, some of which the company has been selling off. In its fourth-quarter statement, Consol disclosed that it also sold some of its Illinois Basin coal reserves to two strategic buyers. Consol is looking to sell US$1 billion worth of noncore assets by 2019.
Consol’s coal division produced 8.0 million t in 4Q14. In the Pennsylvania Operations, the Bailey Mine had a record year in 2014 and annual production was 12.3 million t, which exceeded the mines previous annual production record of 11.1 million t in 2005. In the Virginia Operations, the company's premier Buchanan Mine, again, repeated its stellar cost performance. Total costs sold at Buchanan Mine were US$53.96/t in 4Q14, or a reduction of US$12.64/t from the same period last year.
Edited from various sources by Sam Dodson
Read the article online at: https://www.worldcoal.com/coal/02022015/fairmont-supply-sold-by-consol-energy-1829/