Alliance Coal LLC has reached an agreement to buy the Pennyrile mining complex from Rhino Resource Partners LP for cash and other consideration. The transaction is expected to be completed in the fourth quarter of 2019.
Alliance has also agreed to purchase the majority of the equipment at Pennyrile as well as the preparation plant, barge loadout facilities and related property.
Rhino has ceased coal production at the Riveredge Mine at Pennyrile and will continue to process the remaining raw coal inventory at the site. All remaining coal shipments from existing inventory to a current Rhino customer will be completed in September. No future coal production is planned at the Pennyrile complex as a result of this sale.
Alliance will assume the substantial majority of all remaining future contracted coal sales related to the Pennyrile complex and plans to fulfill these sales from other Alliance operations.
All Pennyrile employees have been given notice of termination, with the last day of employment scheduled for November 1. Pennyrile employees are being provided the opportunity to apply for open employment opportunities at other Rhino operations.
President and CEO of Rhino Rick Boone said, “The closure and sale of the Pennyrile operations was a very difficult decision as it impacts the entire Pennyrile workforce and their families. However, the pressures on the American coal industry and the Illinois Basin in particular, have been well-documented over the past several years.”