SunCoke completes buy of coal handling facility in Indiana

SunCoke Energy Partners LP (NYSE: SXCP) completed its acquisition of Lakeshore Coal Handling Corp. on Aug. 30 from privately held Beemsterboer Corp. for an all cash price of $28.6m.

Located in East Chicago, Ind., Lakeshore has and will continue to provide coal handling and blending services to SunCoke Energy Inc.’s (NYSE: SXC) Indiana Harbor cokemaking operations. SunCoke Energy Partners said Sept. 3 that it intends to maintain Lakeshore’s current operations and retain existing staff.

The Lakeshore acquisition is expected to be immediately accretive to SXCP’s cash flows and earnings, generating about $5m in EBITDA on an annualized basis.

DTE Energy, which holds a 15% interest in SunCoke’s Indiana Harbor cokemaking operations, assigned its share of the Lakeshore buyout rights to SXCP for cash consideration of $1.8m.

SunCoke Energy Partners is a publicly traded master limited partnership which manufactures coke used in the blast furnace production of steel. Its general partner is a wholly owned subsidiary of SunCoke Energy Inc., the largest independent producer of metallurgical coke in the Americas.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.