CONSOL Energy has closed its divestment of the Miller Creek and Fola mine complexes in southern West Virginia to Southeastern Land LLC.
As part of the deal, CONSOL said it would pay Southeastern Land US$44 million – US$27 million on closing and a further US$17 million in instalments over the next four years – in order to “equalise the value exchange”.
Southeastern Land will also assume closing and reclamation liabilities for the two mining complexes, which contain 114 million short t of coal reserves. Miller Creek produces 2.1 million short t of coal in 2015; Fola is currently closed.
The divestment forms part of CONSOL’s strategy to move the 150 year old company out of its traditional coal market and position it as an oil and gas exploration and production company.
After this deal, the company will retain only a stake in the Bailey mining complex through its spin-off company, CNX Coal Resources.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/04082016/consol-completes-west-virginia-mine-divestment-2016-2153/