Blaze Energy has announced that, effective of 1 October 2013, it has entered into a partnership agreement to process and sell coal at the GreenFields coal mine in Gary, West Virginia.
The GreenFields coal mine was previously owned and operated by US Steel Corporation. Over the course of its 40 years in operation, the mine has deposited an estimated 10 million t of coal fines and 20-25 million t of coarse coal. Blaze Energy plans to process this high-quality metallurgical coal for sale at home and abroad.
Effective of 2 October 2013, Blaze Energy has executed an initial allocation letter with a third-party purchaser for the sale of approximately 960 000 t of processed coal. A more definitive agreement is currently pending.
At current market conditions, full performance under the agreement would result in US$ 117.5 million in gross revenues annually, and based on internal projections, net revenue of approximately US$ 26 million.
Leon Blaser, CEO of Blaze Energy, commented: "We are grateful to GreenFields for the opportunity before us. With its existing reserves, rail accessibility, and geographic location, the ability to operate out of the GreenFields site was critical to the company's business model, and the fulfillment of the pending coal sales agreement abroad. We look forward to working with GreenFields, and enjoying great returns in the process."
Adapted from press release by Katie Woodward
Read the article online at: https://www.worldcoal.com/coal/23102013/blaze_energy_to_sell_west_virginian_coal_174/