JW Resources, through its newly formed subsidiary Middlesboro Mining, has completed the acquisition of Appolo Fuels’ Bell County, Kentucky and Claiborne County, Tennessee thermal coal mining operations.
The mining complex includes approximately 33 000 acres containing an estimated 43 million t of proven and probable high-quality thermal coal reserves in the Central Appalachian (CAPP) coal basin.
Industrial coal markets
Middlesboro Mining will primarily serve the industrial coal markets and will continue Appolo’s long-standing supply relationships with several ‘blue-chip’ customers. Assets acquired in the transaction include all permits, contracts and real property leases associated with the Middlesboro Operations, as well as all related infrastructure, including:
- Preparation plant
- Fully permitted refuse facility with significant remaining life
- Dual-service unit train load-out facility providing access to both the CSX and Norfolk Southern rail networks.
The Middlesboro Operations’ diverse mix of surface, highwall, and underground mines will be overseen by mining executive William Snodgrass, current CEO of JW Resources.
Thermal coal reserves
With the addition of Middlesboro Operations, JW Resources now operates approximately 81 000 acres containing an estimated 85 million t of proven and probable thermal coal reserves, as well as three unit train load-out facilities, two preparation plants, and three permitted refuse facilities.
JW Resources owner, Lawrence Clark, commented: "With Middlesboro’s stable industrial customer base and Straight Creek’s utility supply business, JW Resources now enjoys a diverse mix of customer and end-market exposure, all serviced from our high-quality and low-cost reserves. We are particularly excited to add Middlesboro’s unique dual-service rail load-out to our strong collection of infrastructure assets; having access to both the CSX and NS rail networks provides us a significant competitive advantage in serving current and future utility customers.”
World-class coal operation
Sean Ozbold, managing director at Bayside Capital, which also owns the company, added: “We established JW Resources in partnership with Larry to acquire premier low-cost assets that are positioned to participate in the strong long-term global utility and industrial demand environment.
“After acquiring the Straight Creek Operations we evaluated more than 50 add-on acquisition opportunities, and ultimately identified the Appolo assets as the best fit due to their low-cost operations, complementary industrial customer base and close proximity to Straight Creek. JW Resources is now a world-class CAPP coal operation that is well positioned to benefit from the improving utility market and the highly stable industrial market.”
Adapted from press release by Katie Woodward
Read the article online at: https://www.worldcoal.com/mining/24032014/jw_resources_acquires_thermal_coal_complex_647/