CONSOL, Arch now Core Natural Resources

The merger of CONSOL Energy with Arch Resources to create a new operator, Core Natural Resources, which was announced last August, has now been completed.

The transaction, which was supported by more than 99% of the companies’ stockholders, was effectively closed on January 14; Arch shares ceased trading the same day and new CNR trades were effective the following day.

The newly minted company will have over 5,000 employees, and will be operational in six U.S. states with customers in five continents. Its total met coal capacity annually will be about 12 million tons; it will have about 30 million tons of high-cal thermal coal per year, also. Total owned export coal capacity each year is 25 million tons.

Core said it expects to meet several goals, including its best-in-sector metallurgical and thermal coal operating platforms; diverse coal qualities and blends for multiple growth markets; industry-leading North American logistics and export capabilities; a visible revenue stream and upside opportunities; and operating synergies delivering $110 million to $140 million of annual cost savings.

It is also looking forward to increased liquidity and has so far received strong lender support.

The company will retain its headquarters where CONSOL had been based, in Canonsburg, Pa., just south of Pittsburgh. Its portfolio will include the Pennsylvania Mining Complex as well as the Leer, Leer South, and West Elk mines and, as it will maintain a focus on seaborne markets, will continue to hold its interests in two marine export terminals.

The Core board will comprise eight members, four from CONSOL and four from Arch. Jimmy Brock will serve as executive chair and Paul A. Lang will be chief executive officer.

Core’s leadership will also include Mitesh B. Thakkar, President and CFO; Robert J. Braithwaite, Jr., SVP, Marketing and Sales; Rosemary L. Klein, SVP, Chief Legal Officer, and Corporate Secretary; Kurt R. Salvatori, SVP and Chief Administrative Officer; George J. Schuller Jr., SVP and Chief Operating Officer; and Deck S. Slone, SVP, Strategy and Public Policy.

“Today marks a milestone in the proud histories of two great companies,” said Brock. “Through this transformational combination, we have created a global leader exceptionally well-positioned to compete and succeed in two significant, high-potential market segments – the global metallurgical and global high-rank thermal coal markets.”

Added Lang: “This combination joins two proven leadership teams and best-in-sector operating platforms to create a premier North American coal producer. Since the merger’s announcement, the Arch and CONSOL teams have collaborated to lay the foundation for a swift, efficient, and value-creating integration.”

Source: corenaturalresources.com

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