UGM Holdings has bought ADDCAR Systems, a manufacturer of highwall mining systems, from Arch Coal for US$ 21 million. ADDCAR had been a wholly-owned subsidiary of Arch Coal following its acquisition of International Coal Group (ICG) in 2011.
Commenting on the news, John W. Eaves, president and CEO of Arch Coal, said: "This divestiture is consistent with our previously announced and ongoing efforts to monetise non-core assets. With this sale, we are continuing to sharpen our focus on our core competencies - mining and marketing coal."
Australian-based UGM Holdings is a privately held, diversified professional services company that supports mining and related industries. "We wish UGM success as it expands its mining expertise and reach, and we thank the employees of ADDCAR for their dedication and professionalism," added Eaves.
The sale includes all licenses, patents and technology related to the ADDCAR highwall mining system and its manufacturing facility in Ashland, Ky. Also included in the sale are all existing contract mining and equipment lease agreements. UGM will pay the $21 million during 2014 in three installments. Additional terms were not disclosed.
Highwall mining is a method for mining coal from outcropping horizontal seams. The highwall mining machine stands on the pit floor or on a bench, directly in front of the exposed seam. It mines the coal by pushing a remote-operated cutter module into the seam using a string of “push beams” – unmanned coal conveying elements – that transport the mined coal bask to the entry and onto a stockpile.
Adapted from press release by Jonathan Rowland
Read the article online at: https://www.worldcoal.com/mining/10022014/addcar_systems_sold_to_australian_company_by_arch_coal_coal494/