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CONSOL closes $420M mine deal, continues to reduce coal exposure

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CONSOL closes $420M mine deal, continues to reduce coal exposure

announced thecompletion of the $420 million sale of one of the most productive CentralAppalachia coal mines on April 1 to Coronado IV LLC, a unit of .

Thesale of the Buchanan mine in southwest Virginia is to help CONSOL pay down debt.

Accordingto a company release, the sale included $402.8 million cash paid at closing,slightly higher than the figure offered in the initial sale announcement.

Thesale also included CONSOL's idled Amonate mine in southern West Virginia andsouthwestern Virginia, its greenfield Russell County coal reserves insouthwestern Virginia and its greenfield Pangburn-Shaner-Fallowfield coalreserves in southwestern Pennsylvania.

Accordingto data provided by the U.S. Mine Safety and Health Administration, theBuchanan No. 1 mine produced 4.4 million tons in 2015, a 7.7% increase over theprevious year and the largest output among Central Appalachian coal mines.

Thesale continues CONSOL's effort to reduce its exposure to the ailing coalindustry. According to a recent S&P Global Market Intelligence analysis,CONSOL emerged as oneof the few companies able to increase its market value in recent months, whilemuch of the industry continued to contract.

In2015, the company spun off its Pennsylvania coal operations into a masterlimited partnership known as CNXCoal Resources LP, creating a pure play coal producer and leavingit more room to increasingly focus on its Appalachian oil and natural gasoperations.