Natural Resource Partners (NRP) and Foresight Energy recently settled litigations regarding Foresight Energy’s Hillsboro Energy Deer Run mine and Foresight Energy’s Macoupin Energy Shay mine. Upon execution of final documents, NRP will receive a payment of $25 million from Foresight Energy in consideration of disputed past due amounts. In addition, NRP and Foresight Energy will amend the Hillsboro Energy coal mining lease to provide $11 million of non-recoupable annual minimum payments to NRP and extend the current lease term through the end of 2033. All claims will be dismissed in both the Hillsboro Energy and Macoupin Energy litigations.
“These agreements represent a favorable outcome for NRP and an important step in advancing our business relationship with Foresight,” said Craig Nunez, president and COO of NRP. “We look forward to continuing our long-term partnership with them.”
NRP, a master limited partnership headquartered in Houston, Texas, is a diversified natural resource company that owns interests in coal, aggregates, and industrial minerals across the United States. A large percentage of NRP’s revenues are generated from royalties and other passive income.
“We are pleased to have reached a mutually beneficial resolution in these lawsuits,” said Robert D. Moore, president and CEO, Foresight Energy. “These agreements provide us with long-term control of our coal reserves and operational flexibility at Hillsboro Energy’s Deer Run mine. We look forward to continuing our relationship with NRP in the future.”
Foresight Energy is a leading U.S. coal producer, controlling more than 1.7 billion tons of coal reserves in the Illinois Basin. Foresight Energy currently operates two longwall mining complexes with three longwall mining systems, Williamson (one longwall mining system) and Sugar Camp (two longwall mining systems), one continuous mining operation (Macoupin), and the Sitran river terminal on the Ohio River. Foresight’s operations are strategically located near multiple rail and river transportation access points, providing transportation cost certainty and flexibility to direct shipments to the domestic and international markets. Foresight Energy also owns coal interests and mining assets located in southeastern Ohio.