Alpha Natural Resources (ANR) has closed a deal with Lexington Coal Company (LCC) to convey real and personal properties located in Kentucky, Tennessee and West Virginia. While transferring mostly idle and non-active assets, substantial reclamation equipment and ongoing royalty payments associated with the properties, the conveyance also eliminates self-bonding in West Virginia nine years early.
New Lexington Coal CEO, Steven Poe, said the conveyance includes approximately 250 permits and bonding representing US $192 million.
"Having five mines that are currently in coal production, substantial infrastructure and capital, and an experienced, talented workforce will enable LCC to accelerate reclamation on a five year timetable with less contingent exposure for the states in which we operate," said Poe.
Poe indicated that LCC will mine to reclaim. This is expected to lower the cost of reclamation and bring in revenue while the company continues to divest isolated assets as markets warrant.
"Our management team knows the properties and permits, and has a demonstrated track record of success," continued Poe.
"Having 100 million t of reserves will ensure a long runway for the assets, providing job security and continued opportunities where we operate."
Specific economic terms were not disclosed, but LCC will receive approximately US $199 million in cash and US $126 million in installment payments to assist in the fulfillment of bonding, reclamation, water treatment and other obligations.
Read the article online at: https://www.worldcoal.com/coal/25102017/alpha-natural-resources-transfers-idle-assets-to-lexington-coal/