Alpha adds several active coal mines to list of to-be-sold assets

Alpha Natural Resources on Nov. 30 added several active mines to a list of assets that its bankruptcy court had approved on Nov. 6 for auction as the coal producer looks to reorganize in Chapter 11.

The company had filed in August for Chapter 11 protection at the U.S. Bankruptcy Court for the Eastern District of Virginia. The court approved the auction process for several shut and to-be-shut mines on Nov. 6. On Nov. 23, Alpha filed an amendment clarifying that the Superior Mine Asset to be sold will include a preparation plant and loadout facilities. The Nov. 30 filing added some active mines to the list.

The list of assets to be sold from before is:

  • Black Bear/Ben’s Creek, West Virginia, Mingo County, includes prep plant/loadout, Mountaineer Mine, closed;
  • Coalgood, Kentucky, Harlan County, includes prep plant/loadout, Coalgood Surface Mine, closed;
  • Cucumber, West Virginia, McDowell County, includes loadout, Cucumber Mine, closed;
  • Goals/Edwight, West Virginia, Raleigh County, includes prep plant/loadout, Edwight Mine, closure in process;
  • Green Valley, West Virginia, Nicholas County, includes prep plant/loadout, Grassy Creek Mine and Hominy Creek Mine, both closed;
  • Knox Creek, Virginia, Tazewell County, includes prep plant/loadout, Tiller #1 Mine, closure in process;
  • Martin County Coal, Kentucky, Martin County, includes prep plant/loadout, Voyager 7 Mine/White Cabin 7 Mine/White Cabin 9 Mine, all closed;
  • Rawl, West Virginia, Mingo County, includes prep plant/loadout, coal reserve without mine;
  • Revolution Mine/Independence, West Virginia, Boone County, includes prep plant/loadout, Revolution Mine, closed;
  • Rock Springs, West Virginia, Wayne and Lincoln counties, includes prep plant/loadout, Rock Springs Mine, closed;
  • Superior Mine, West Virginia, Logan County, includes prep plant/loadout, Superior Surface Mine, closed;
  • Tennessee Consolidated Coal, Tennessee, primarily Marion County, includes prep plant/loadout, Mine 43, closed;
  • Twilight Surface Mine, West Virginia, Boone and Raleigh counties, no prep plant/loadout, Twilight Surface Mine, closure in process;
  • Twin Star, Buchanan County in Virginia and Mingo County in West Virginia, includes loadout, Twin Star Surface Mine, closed;
  • Wabash, Illinois, Wabash and Edwards counties, includes prep plant/loadout, reserve with no mine; and
  • White Flame Surface Mine, West Virginia, Mingo County, no prep plant/loadout, White Flame Surface Mine, closed.

The new mines added to the list on Nov. 30 are:

  • Bandmill, West Virginia, Logan County, includes prep plant/loadout, Highlands Surface and Highwall Mines (active), Hernshaw Mine (active), Cedar Grove #2 Mine (active), and Alma Mine (active);
  • Delbarton, West Virginia, Mingo and Logan counties, includes prep plant/loadout, Kielty Mine, active;
  • Inman/Admiral, West Virginia, Boone County, includes prep plant/loadout, Black Castle Surface and Highwall Mines (active) and Randolph/Inman Mine (closed);
  • Mammoth, West Virginia, Kanawha/Fayette/Raleigh counties, includes prep plant/loadout, Empire Surface Mine (active), Laurel Coalburg Mine (active), Republic Surface and Highwall Mines (active) and Slabcamp Stockton Mine (active);
  • Sidney, Kentucky, Pike and Martin counties, includes prep plant/loadout, Process Energy Mine, active;
  • Roxana, Kentucky, Letcher County, includes prep plant/loadout, EMC #9 Mine, active; and
  • Litwar, West Virginia, McDowell County, includes prep plant/loadout, Horse Creek #1 Mine (active) and Lower War Eagle Mine (active).

Notable is that in these kinds of asset sales the prep plants and loadouts may have much more value to buyers, since the mines may have reserves that have been largely depleted and the prep plants/loadouts may have value to handle coal produced from nearby reserves held by the buyer.

Alpha on Nov. 23 filed with the bankruptcy court a notice of the planned auction of the properties and state-issued mining permits related to them. If more than one qualified bid is received for a particular asset or group of assets, or if the Alpha companies otherwise determine that it would promote the sale process, Alpha and its attorneys will conduct an auction for the applicable assets. The initial auction has been scheduled to take place at offices of the debtors’ counsel, Jones Day, at 222 East 41st Street, New York, New York 10017, at 10:00 a.m. (prevailing Eastern Time) on Jan. 27, 2016.

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.