Alliance Resource Partners LP (NASDAQ: ARLP) said Jan. 2 that its Alliance Coal LLC operating subsidiary has acquired from an affiliate of Patriot Coal the rights to certain coal supply agreements.
The agreements provide for delivery of approximately 3.7 million tons of coal during the 2015-2017 period. Alliance also announced that certain of its affiliates and a related party have agreed to acquire other assets from Patriot, including mining equipment and coal reserves. Closing of the latter transaction is expected to be completed in the first quarter 2015. Completion of the transactions is subject to obtaining certain third party consents and other conditions.
Patriot recently shut the Highland and Dodge Hill mining operations in western Kentucky and said it has sold some of its assets there to Alliance, which is a major coal producer in that region.
ARLP is a diversified producer and marketer of coal to major United States utilities and industrial users. ARLP is currently the third largest coal producer in the eastern United States with mining operations in the Illinois Basin and Appalachian coal producing regions. ARLP operates ten mining complexes in Illinois, Indiana, Kentucky, Maryland and West Virginia. ARLP is also purchasing reserves, operating surface facilities and making equity investments in a new mining complex in southern Illinois. In addition, ARLP operates a coal loading terminal on the Ohio River at Mount Vernon, Indiana.