Murray Energy to acquire five coal mines in West Virginia in $3.5 billion deal
Murray Energy will purchase five longwall coal mines in West Virginia from CONSOL Energy for a reported $3.5 billion.
CONSOL announced the sale of its Consolidation Coal Co. subsidiary on Oct. 28, saying the move is good for long-term growth, The Associated Press reported.
Murray Energy will acquire the McElroy Mine, Shoemaker Mine, Robinson Run Mine, Loveridge Mine and Blacksville No. 2 Mine, plus river and dock operations. The mines produced a combined 25.8 Mt (28.5 million st) last year.
"No company has developed a better legacy with its employees, with its customers, with the finiancial markets, with the regulatory agencies or with the public in general over many decades than CONSOL and Consolidation Coal. Murray Energy intends to preserve this well-earned legacy," said Robert Murray, chairman, president and chief executive officer of Murray Energy.
Its river and dock operations include a fleet of 21 tugboats and 600 barges.
Murray Energy is also paying $2.4 billion to take over some of Consol’s pension, environmental, and other liabilities, the Pittsburgh Post Gazette reported.
CONSOL Chairman J. Brett Harvey said it was a difficult decision to sell mines that have long contributed to America’s strength and the company’s legacy. He said the West Virginia workers are among the safest and most productive in the world.
CONSOL is keeping the Buchanan Mine in Virginia.
The deal gives Murray Energy 1 Gt (1.1 billion st) of coal reserves.