SunCoke Energy Inc. Announces Sale of Harold Keene Coal Companies Unit
01/05/2015 - SunCoke Energy Inc. announced that its wholly-owned subsidiary, Jewell Resources Inc., executed a definitive agreement to sell 100% of its interest in the entities that make up the Harold Keene coal companies (HKCC) to Omega Holdings LLC for approximately US$9.5 million.
The deal, which is subject to Omega obtaining acceptable third-party financing, is expected to be comprised of a combination of cash, future tonnage-based royalty payments and the assumption of US$2.5 million of estimated reclamation obligations. Omega, a privately held firm located in Cedar Bluff, Va., is a holding company for various coal mining operations.
“Given the ongoing difficult coal price environment, we made the strategic decision early in 2014 to sell or downsize our coal mining operations,” said Fritz Henderson, chairman and chief executive officer of SunCoke Energy Inc. “Today’s sale aligns with this strategy. With their nearby coal mining activities and familiarity with our operations, Omega is a natural fit for this portion of our coal business. We will continue to implement our Coal Mining business downsizing plans while simultaneously pursuing a sale of all or other portions of our remaining coal mining operations.”
HKCC has nearly 20 million tons of proven and probable coal reserves located on approximately 250 acres in Russell and Buchanan counties, Va. HKCC’s operations, which were largely idled in 2013, consist primarily of high wall and deep mine reserves of hi-vol A and hi-vol B metallurgical coals and thermal coal. This sale also includes HKCC’s warehouse, two idled coal preparation plants and certain coal loadout facilities.
The closing of this transaction will be conditioned upon Omega’s ability to obtain adequate, third-party financing and is subject to regulatory approvals and other customary closing conditions, including working capital adjustments. This transaction is expected to close in first quarter 2015.
SunCoke Energy Inc. is the largest independent producer of coke in the Americas, with 50 years of experience supplying coke to the integrated steel industry. Our advanced, heat-recovery cokemaking process produces high-quality coke for use in steelmaking, typically captures waste heat for derivative energy resale and meets or exceeds environmental standards. Our U.S. cokemaking facilities are located in Virginia, Indiana, Ohio and Illinois. Outside the U.S., we have cokemaking operations in Vitoria, Brazil and Odisha, India. Our coal mining operations, which have more than 110 million tons of proven and probable reserves, are located in Virginia and West Virginia. In addition, through our 56 percent ownership of SXCP, we have an interest in SXCP's coal logistics business, which has the collective capacity to blend and transload more than 30 million tons of coal annually. To learn more about SunCoke Energy Inc., visit our website at www.suncoke.com.
“Given the ongoing difficult coal price environment, we made the strategic decision early in 2014 to sell or downsize our coal mining operations,” said Fritz Henderson, chairman and chief executive officer of SunCoke Energy Inc. “Today’s sale aligns with this strategy. With their nearby coal mining activities and familiarity with our operations, Omega is a natural fit for this portion of our coal business. We will continue to implement our Coal Mining business downsizing plans while simultaneously pursuing a sale of all or other portions of our remaining coal mining operations.”
HKCC has nearly 20 million tons of proven and probable coal reserves located on approximately 250 acres in Russell and Buchanan counties, Va. HKCC’s operations, which were largely idled in 2013, consist primarily of high wall and deep mine reserves of hi-vol A and hi-vol B metallurgical coals and thermal coal. This sale also includes HKCC’s warehouse, two idled coal preparation plants and certain coal loadout facilities.
The closing of this transaction will be conditioned upon Omega’s ability to obtain adequate, third-party financing and is subject to regulatory approvals and other customary closing conditions, including working capital adjustments. This transaction is expected to close in first quarter 2015.
SunCoke Energy Inc. is the largest independent producer of coke in the Americas, with 50 years of experience supplying coke to the integrated steel industry. Our advanced, heat-recovery cokemaking process produces high-quality coke for use in steelmaking, typically captures waste heat for derivative energy resale and meets or exceeds environmental standards. Our U.S. cokemaking facilities are located in Virginia, Indiana, Ohio and Illinois. Outside the U.S., we have cokemaking operations in Vitoria, Brazil and Odisha, India. Our coal mining operations, which have more than 110 million tons of proven and probable reserves, are located in Virginia and West Virginia. In addition, through our 56 percent ownership of SXCP, we have an interest in SXCP's coal logistics business, which has the collective capacity to blend and transload more than 30 million tons of coal annually. To learn more about SunCoke Energy Inc., visit our website at www.suncoke.com.
