http://wvmetronews.com/2017/07/19/alpha-natural-resources-to-sell-idle-mines/
KINGSPORT, Tenn. — Alpha Natural Resources announced Wednesday it has entered an agreement with Lexington Coal Company that includes property across four states, including West Virginia.
The deal includes around 280 permits, reclamation equipment, royalty payments and 100 million tons of reserves. The deal regards resources in Kentucky, Illinois, Tennessee and West Virginia.
The properties connected to the deal are currently idle. Lexington Coal Company will receive around $204 million in cash when the deal is closed as well as $112 million in installment payments for bonding, reclamation, water treatment and other related issues.
“LCC has a decade-long history of reclaiming properties in a diligent and environmentally responsible manner, and Alpha is providing LCC with adequate resources to meet its obligations to the communities in which the properties are located,” Alpha Natural Resources CEO David Stetson said in a press release.
A management team has been overseeing Alpha Natural Resources’ idle and non-active properties after it emerged from Chapter 11 bankruptcy in July 2016.
The deal also eliminates all remaining self-bonds in West Virginia. The company had around $250 million in self-bonding outstanding before emerging from bankruptcy.
Alpha Natural Resources will still operate nine prep plants and 19 mines in West Virginia. The company estimates it will produce 14 million tons of metallurgical and thermal coal this year.
KINGSPORT, Tenn. — Alpha Natural Resources announced Wednesday it has entered an agreement with Lexington Coal Company that includes property across four states, including West Virginia.
The deal includes around 280 permits, reclamation equipment, royalty payments and 100 million tons of reserves. The deal regards resources in Kentucky, Illinois, Tennessee and West Virginia.
The properties connected to the deal are currently idle. Lexington Coal Company will receive around $204 million in cash when the deal is closed as well as $112 million in installment payments for bonding, reclamation, water treatment and other related issues.
“LCC has a decade-long history of reclaiming properties in a diligent and environmentally responsible manner, and Alpha is providing LCC with adequate resources to meet its obligations to the communities in which the properties are located,” Alpha Natural Resources CEO David Stetson said in a press release.
A management team has been overseeing Alpha Natural Resources’ idle and non-active properties after it emerged from Chapter 11 bankruptcy in July 2016.
The deal also eliminates all remaining self-bonds in West Virginia. The company had around $250 million in self-bonding outstanding before emerging from bankruptcy.
Alpha Natural Resources will still operate nine prep plants and 19 mines in West Virginia. The company estimates it will produce 14 million tons of metallurgical and thermal coal this year.
