“This acquisition significantly increases SunCoke Energy’s coal reserves, representing an important step forward in building the value proposition we offer customers,” said Frederick A. Henderson, who will serve as chairman and CEO, SunCoke Energy, upon its separation from Sunoco. “Given its contiguous nature, we believe we can manage this acquisition effectively as part of our existing Jewell coal and coke operations in Vansant, Va., allowing us to create immediate value for the business.”
The assets acquired in this transaction include two active underground mines and one active surface and highwall mine currently producing 250,000 to 300,000 tons of coal annually, with the potential to expand production in the future. Current production volumes are contracted for sale through 2011.
SunCoke Energy provides metallurgical-grade coke for major steel manufacturers in the United States and Brazil. Coke is a principal raw material in steel making. SunCoke has been a market leader in designing, building, owning and operating plants that have far less impact on the environment than traditional coke making plants. SunCoke’s plants are configured to efficiently produce electricity and/or high-grade industrial steam from the valuable heat recovered from its coking process.