CN expects the transaction to close in approximately 45 days, following receipt of regulatory approvals. Upon closing, CN would enter a 10-year rail transportation agreement with Savatran, another affiliate of Foresight and Cline, to haul coal from four Illinois mines to the Convent transfer facility.
“The acquisition of these terminal assets, as well as the signing of the transportation agreement with CN, is an important next step in our continuing investment in infrastructure assets that provide transportation and market optionality for our low-cost coal mining operations,” said Michael Beyer, CEO, Foresight Energy. “This firms up the logistics for our coal sales into the international coal markets, which are a significant and growing part of our business.”
“These initiatives will allow CN to make better use of its southern rail corridor while expanding its participation in the growing export of Illinois Basin coal,” said Luc Jobin, executive vice president and CFO, CN.
Foresight will expand the capacity of the facility to 8 million tons of export coal per year, from a current capacity of approximately 4 million tons, with the potential for an additional 8-million-ton expansion as market conditions warrant.