SunCoke Energy Inc. Provides Update on Coal Mining Divestiture
07/25/2014 - On 17 July 2014, SunCoke Energy Inc.’s Board of Directors authorized the sale or other disposal of its Coal Mining business. It currently anticipates a transaction by year-end 2014.
Concurrent with this approval, the Coal Mining segment is now considered “held for sale” and will be reflected as discontinued operations in financial statements beginning in third quarter 2014. SunCoke estimates it will incur total pre-tax exit and disposal costs of US$10 million to US$13 million, with the majority of these costs occurring in second half 2014. The foregoing are estimates only. Actual costs relating to these actions will not be known until it finalizes the sale/disposition plan. In addition, it will no longer record depreciation expense in the Coal Mining segment.
In the second quarter 2014, pursuant to the exit strategy, SunCoke solicited and received indicative offers for the purchase of the Coal Mining segment. In view of these offers, the continuing weakness in coal pricing and analysis of the recoverability of long lived assets and goodwill, SunCoke recorded a non-cash pre-tax impairment charge of US$103.1 million in the second quarter of 2014.
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.
In the second quarter 2014, pursuant to the exit strategy, SunCoke solicited and received indicative offers for the purchase of the Coal Mining segment. In view of these offers, the continuing weakness in coal pricing and analysis of the recoverability of long lived assets and goodwill, SunCoke recorded a non-cash pre-tax impairment charge of US$103.1 million in the second quarter of 2014.
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.
