PITTSBURGH, Pa. — One of West Virginia’s longest standing coal producers ends 2013 out of the West Virginia coal business. Consol Energy announced Thursday it has finalized the sale of five longwall mining operations in West Virginia to Murray Energy Corporation.
The sale was originally announced October 28 and includes Consol’s McElroy, Shoemaker, Blacksville, Loveridge, and Robinson Run mining complexes in West Virginia, certain coal reserves, related river transportation and dock facilities, and other assets.
The final price tag on the transaction included 850 Million dollars in cash at closing along with 184 Million in future payments from Consol’s retention of royalty on select reserves and tolling fees at Consol’s Baltimore terminal.
Murray Energy, based in St. Clairesville, Ohio acquired 2.4 Billion dollars of Consol liabilities with the purchase. The company assumes the obligations of Consol’s 1974 Pension Trust agreement with the United Mine Workers of America, presently valued at 941 Million dollars.
“No Company has developed a better legacy with its employees, with its customers, with the financial markets, with the regulatory agencies, or with the public in general, over many decades, than has Consol and Consolidation Coal,” said Robert E. Murray, Chairman, President, and Chief Executive Officer of Murray Energy when the sale was announced in October. “Murray Energy intends to preserve this well-earned legacy.”
Murray bills itself as the largest privately owned coal company in the United States and the second largest producer of longwall mined coal in the nation.
Consol announced its sale of the coal operations to focus future company growth in the area of natural gas production and exploration.
“The completion of this complex transaction this year enables us to enter 2014 with our focus of achieving our gas growth production targets of 210–225 Bcfe for 2014 and 30% annual gas production growth in 2015 and 2016.” said J. Brett Harvey, chairman and CEO of Consol