Alpha Natural Resources (NYSE: ANR) announced Dec. 30 that its subsidiary AMFIRE Mining Co. LLC has completed the previously announced divestiture of substantially all of its assets to Rosebud Mining.
The transaction included total consideration of approximately $86m, including $75m in cash and the assumption of certain liabilities. The assets, which include ten mines and four preparation plants and loadouts, are located in Cambria, Centre, Clearfield, Elk, Greene, Indiana and Somerset counties, Pennsylvania.
Alpha pointed out that its affiliates continue to operate two mines in southwestern Pennsylvania that are not connected with the transaction, the Emerald and Cumberland longwall mines near Waynesburg. More than 1,100 workers are employed by these Greene County operations, which work the Pittsburgh coal seam.
Alpha, through AMFIRE, had been the only major coal producer in the central Pennsylvania coal business. Rosebud, founded by coal operator J. Clifford Forrest, is a major producer of coal within that region and has gotten bigger with this buy. Other, significant producers in central Pennsylvania include Corsa Coal, which this year acquired PBS Coals, another major producer in the region. This region has heavily-depleted coal reserves and is marked by relatively small surface and deep mines working the remaining coal. It does have some of the better metallurgical coals in the U.S.
Said the Rosebud Mining website: “From simple beginnings in 1979, Rosebud Mining Company has strived to be the best company we can be. That dedication starts with hiring the best people who take a personal stake in adhering to the safest, most productive ways to do their job. This simple philosophy has provided Rosebud Mining Company opportunities to expand mining operations throughout Western Pennsylvania and Eastern Ohio. To date, Rosebud is the 3rd largest coal producer in Pennsylvania and the 21st largest producer in the United States.”
Alpha Natural Resources is one of the largest and most regionally diversified coal suppliers in the U.S. With affiliate mining operations in Virginia, West Virginia, Kentucky, Pennsylvania and Wyoming, Alpha supplies metallurgical coal to the steel industry and thermal coal to generate power to customers on five continents.