Czech-based Sev.en Global Investments has signed a binding agreement to acquire a 51% interest in Coronado Global Resources Inc., from The Energy & Minerals Group (EMG).

Coronado Global Resources produces high-quality metallurgical coal from three mining complexes in two of the largest and most productive metallurgical coal basins in the world, Queensland’s Bowen Basin in Australia, and the Central Appalachian region of the U.S. With an annual production of approximately 16 million metric tons (mt), Coronado ranks among the top five met coal producers. The company has total reserves of 550 million mt.

“We are excited to become the majority shareholder of Coronado,” said Alan Svoboda, CEO of Sev.en GI. “We believe that Coronado has established a successful business strategy, and we will support the company in continuation of its business strategy to grow and strengthen its position both in the U.S. and Australia. This deal is a testament of our ability to grow rapidly and successfully and aligns with our long-term strategy for international growth in these two jurisdictions.”

The acquisition of a majority stake in Coronado will further solidify Sev.en’s position as a world leading producer of high-quality metallurgical coal. In the U.S., Sev.en GI owns the fourth largest U.S. met coal producer, Blackhawk Mining, which mines roughly 9 million mt/y of coal, and the Golden Eagle Land Co., which holds more than 2 billion mt of coal reserves.

“[This transaction] accomplishes EMG’s short-term objectives and contemporaneously leaves Coronado well positioned for continued long term success,” said John Raymond, founder and executive chairman of EMG. “When we formed Coronado 12 years ago, we did so with the objective of becoming one of the industry’s leading metallurgical coal businesses with a large-scale resource base, strong balance sheet and a best-in-class management team with whom we have created considerable value.

“With these constructs in place as we transition the business to Sev.en, the Coronado platform remains well positioned for the future given Sev.en’s deep understanding of metallurgical coal fundamentals complemented by their strong balance sheet and stated objective to continue to support and grow the business,” Raymond said.

The value of the transaction was not disclosed, and it is subject to customary closing conditions, including regulatory approvals in the U.S. and Australia.