Australian-headquartered, U.S-focused Coronado Global Resources said it will sell its Logan Mining Complex in West Virginia to Phoenix Coal Holdings in a deal with undisclosed financial terms.
The miner said it will sell all of its interest to the Kentucky company, owned by Mitch Potter (also owner of Coal-Mac), including coal mining properties, leases, mining permits and related infrastructure, including a preparation plant and loadout facility.
The divestment of the Logan Mining Complex is expected to reduce ongoing care and maintenance and holding costs associated with the asset; eliminate reclamation and other future obligations associated with the mine; and allow Coronado to focus capital allocation on its core metallurgical coal operations.
The transaction is not expected to have an impact on Coronado’s near-term production guidance, it said, though Interim Chief Executive Officer Gerry Spindler said it represents a further step in streamlining Coronado’s portfolio.
“The divestment transfers future obligations associated with Logan while enabling us to prioritise capital and operational focus elsewhere,” he said.
Logan is located in Boone, Logan and Wyoming counties.
Completion of the transaction is subject to customary closing conditions and is expected to occur in July.
Source: coronadoglobal.com