“The additional reserves will nearly double the Straight Creek reserve base on a property at which our management team has a tremendous knowledge and operating experience,” said Bernie Mason, president, Xinergy. The close proximity of the reserves, which are immediately to the north of Straight Creek, will allow us to take advantage of certain synergies, including transporting the coal directly through Straight Creek utilizing our existing facilities, and utilizing Straight Creek’s excess productive capacity.”
The coal assets include leases, permits and equipment. The company estimates there are 12,000 leased acres containing approximately 15 million tons of proven and probable reserves of which 4 million are permitted and which share a common boundary with Xinergy’s current Straight Creek operations. The company also receives a 600-tph heavy media preparation plant with fully permitted refuse storage facility, a batch weigh unit train loadout on CSX railroad, and miscellaneous surface and underground mining equipment including two highwall miner units.