Massey said that with the acquisition, it will increase its total reserve holdings in Northern Appalachia to over 117 million tons, almost all of which have metallurgical qualities.
Depending on permitting requirements and mining methods, the mineable reserves could increase. Massey also gained court approval to acquire related mining rights and the rights for joint use of an associated dock facility on the Monongahela River.
Baxter Phillips, Jr, president of Massey Energy, said: “We continue to execute a strategy to acquire high quality coal reserves. This acquisition is particularly exciting as it provides additional metallurgical coal reserves as well as direct access to cost advantaged transportation alternatives.
“We are pleased to have a strong balance sheet which enables us to continue making opportunistic acquisitions.”
As provided by the court, all assets are to be acquired free and clear of all liabilities. The transaction is expected to close in June.
