Goldman purchased the La Francia mine form Canadian Coalcorp in 2010 for $200 million. It then bought the El Hatillo mine, the Cerro Largo deposit, the port and the portion of the railroad for $407 million in 2012. In January 2014, Goldman idled the property when Colombia enacted more strict environmental policies for the ports exporting coal. At the time, the company said it would take 16 to 18 months to make the necessary improvements. MEC reportedly paid less than $10 million for the property, according to the Wall Street Journal.
“This is truly a transformative transaction for Murray Energy. Acquiring assets in Colombia will broaden our international presence in an attractive market and position ourselves to better serve our customers around the world,” said Robert D. Moore, Executive Vice President, COO, and CFO of MEC.
Javelin Global Commodities will be the marketing agent for all coal produced by MEC’s Colombian mines, which will be renamed Murray Colombian Resources. “Murray Colombian Resources is a terrific fit for our ongoing marketing activities in North America, Europe, and Latin America. We look forward to serving these customers with an increasing suite of high-quality coals,” said Peter Bradley, CEO of Javelin.