INR Energy (INR) a privately held producer and exporter of high-volatility metallurgical and thermal coal, has announced that it has entered into a definitive agreement to sell its West Virginia coal mining operations to Cliffs Natural Resources Inc. for a price tag of US$ 757 million.
INR views this transaction as a positive for its employees, shareholders, customers and vendors, as Cliffs is planning to continue aggressive development of the business.
“Cliffs presented an attractive offer to INR along with its assurance that it plans to retain the current operational management teams, continue to aggressively grow the business and treat our employees fairly and equitably,” said Gary Rogliano, INR Energy’s Chief Executive Officer. “Because of those assurances, INR’s Board voted to approve the transaction.”
INR acquired its West Virginia operations in late 2007 and has since grown the operation from one mine into a world class mining complex serving domestic and international steel mills and power generators. INR’s West Virginia operations currently include two underground metallurgical coal mines, the Powellton and Chilton-Dingess mines, one surface mine, the Toney Fork #2 mine and the Saunders Preparation Plant and Elk Lick Loadout. INR is also developing several additional underground mines within the same Buffalo Creek mining complex.
“Since December 2007, the INR Energy management team has built a very attractive coal business producing low cost, high quality metallurgical & thermal products serving both export and domestic markets. Our confidence in the capabilities of INR Energy’s management team and the investment merits of the coal sector has been rewarded,” stated John Calvert, Managing Partner of The Energy & Minerals Group, INR Energy’s founding investor.
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