White Energy Company Limited (WEC) announced that it has acquired Mountainside Coal Company, which operates coal mines in Kentucky, USA. The mines collectively produce approximately 400,000 tpy of coal.
WEC successfully purchased 100% of the capital stock of Mountainside Coal for US$ 20 million. The contract includes purchase of all mine infrastructure, plant, equipment, permits and unsold coal stocks.
The purchase of Mountainside Coal will provide WEC with a revenue stream, as well as presenting an opportunity to showcase its binderless coal briquetting (BCB) technology in America.
WEC intends to expand the Mountainside Coal business in a stepped process, including the installation of a coal preparation plant and a BCB plant.
WEC Managing Director, Brian Flannery commented: “The Mountainside Coal acquisition will give White Energy the opportunity to introduce our BCB technology into the North American coal industry, and at the same time add value to Mountainside Coal by selling the majority of the production to the specialty markets.”
Low ash sized coal products produced from Mountainside Coal are sold into specialty industrial markets in the USA and Canada. The power station market in the USA consumes considerable quantities of coal, however selling prices have recently been low due to competition with surplus gas produced from the large shale gas exploration projects.
Adapted from press release by Katie Woodward
Read the article online at: https://www.worldcoal.com/coal/07102013/white_energy_buys_us_coal_producer_99/
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