The Coalgood assets include a permitted surface mine operation that has been idle since 2012 and nearly 12 million tons of high-quality thermal coal reserves. JRL has indicated its plan to operate the assets.
“The divestiture of the Coalgood mining complex represents our ongoing dedication to our strategic plan regarding idled assets, which has been to identify non-strategic properties for divestiture, thereby allowing Alpha to reduce its footprint,” said Alpha CEO David Stetson. “In this case, we will transfer six permits, reduce bonding by $6 million and also reduce our ARO in future years by a significant amount.”
Terms of the transaction were not released.
Alpha Natural Resources Holdings Inc. and ANR Inc. have affiliate mining operations in West Virginia and Kentucky, and supplies metallurgical coal to the steel industry and thermal coal to generate power.