Solar Fuel controls, through ownership and lease, estimated reserves exceeding 20 million short tons of low volatile metallurgical coal in Somerset County in the US state of Pennsylvania.
AK Steel will pay $36m in cash for the coal company, which the steel maker plans to rename AK Coal Resources.
AK Steel said it expects to invest about $60m in AK Coal Resources to develop its mining operations and begin coal production.
The company anticipates that AK Coal Resources’ coal production will provide it with significant cost savings for low volatile metallurgical coal once mining activities begin.
