Mechel Closes Acquisition of Bluestone Coking Coal Assets
05/12/2009 - Mechel OAO closes its previously announced acquisition of Bluestone Coal, a privately-held West Virginia-based coal businesses engaged in the mining, processing and sale of premium quality hard coking coal.
Mechel OAO has closed its previously announced acquisition of the coking coal assets of Bluestone Coal, a privately-held West Virginia-based coal businesses engaged in the mining, processing and sale of premium quality hard coking coal.
Mechel is paying $436 million in cash (including $36 million interest paid), approximately 83.3 million preferred shares, plus the assumption of approximately $132 million of net debt.
Mechel gains four mining complexes comprising eight active open pitand five underground minesrepresenting an estimated 725 million tonnes of reserves and resources.The acquisition includesBluestone Industries, Inc. and Dynamic Energy, Inc., both West Virginia corporations, as well as JCJ Coal Group, LLC, a Delaware limited liability company and some of its West Virginia affiliates.
Other business activities conducted by the owners of Bluestone Coal Corp., including steam coal operations in Kentucky and other non-coal operations, were not included in the transaction.
Mechel, one of Russia’s leading companies, unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, nickel, hardware, heat, and electric power. Its business includes four segments—mining, steel, ferroalloys and power—and its products are marketed domestically and internationally.
