KINGSPORT, TN — Alpha Natural Resources has closed its deal with Lexington Coal Company for mining operations in West Virginia, Kentucky and Tennessee, Alpha announced Tuesday.
The deal includes conveyance of real and personal properties, most of which are described as idle and non-active assets.
The deal eliminates self-bonding in West Virginia nine years earlier than expected when it comes to reclaiming mined properties formerly owned by Massey Energy which was purchased by Alpha several years ago.
Lexington gets 250 permits and bonding representing $192 million in the deal, new Lexington Coal CEO Steven Poe said.
“Having five mines that are currently in coal production, substantial infrastructure and capital, and an experienced, talented workforce will enable LCC to accelerate reclamation on a five year timetable with less contingent exposure for the states in which we operate,” Poe said in a news release.
The deal includes 100 million tons of reserves.
Alpha Natural Resources CEO David Stetson called the agreement a win/win for all involved because mined properties will be reclaimed earlier than expected in West Virginia.
“LCC is well capitalized to meet its responsibilities to those local communities and to do so years earlier than originally planned. The transaction also eliminates the risks associated with self-bonding, making this a transformational deal for West Virginia,” Stetson said.
Alpha will still have a presence in West Virginia. The company will operate 20 mines and nine prep plants. It said it expects to produce 14 million tons of metallurgical and thermal coal in West Virginia in 2017.