MORGANTOWN, W.Va. (AP) — Alpha Natural Resources says it has agreed to convey 280 permits, reclamation equipment, royalty payments and 100 million tons of coal reserves in four states to Lexington Coal Co.
According to Alpha, Lexington will get $204 million at closing and $112 million in installments to help with bonding, reclamation, water treatment and other obligations. The deal, subject to regulatory approvals, applies to holdings in Kentucky, Illinois, Tennessee and West Virginia.
The company emerged from bankruptcy reorganization last year.
In West Virginia, it recently sold Green Valley mining assets to Quinwood Coal Co. and sold of its New River Energy natural gas operation to Kinzer Drilling.
Alpha, based in Kingsport, Tennessee, plans to open a new underground metallurgical coal mine in Raleigh County targeted to start producing in September.