Alpha Natural Resources Inc. announced it divested substantially all of the assets of two separate operations, a coal mining complex and a natural gas operation.
Both assets are in central West Virginia and are expected to be restarted into production. The divestiture is part of Alpha's strategy of selling nonstrategic assets as the company, recently out of bankruptcy, aims to its make its operations leaner.
"With these significant divestitures, we will transfer 28 mining-related permits, reduce surety bonding by approximately $3.5 million, eliminate future reclamation spending at these sites, and further reduce our annual holding cost for inactive and idle properties by approximately $1.1 million," Alpha CEO David Stetson said May 30. "Additionally, $2.7 million in self-bonding will be eliminated as part of these sales, which will assist [Alpha] in meeting its obligations to the state of West Virginia."
The sale includes Green Valley mining assets in Nicholas and Greenbrier counties, which are being sold to Quinwood Coal Co. Those assets include a preparation plant and related permits that have been idle since the second quarter of 2014. Alpha is selling its New River Energy natural gas operation, which includes 120 producing natural gas wells in five counties, to Kinzer Drilling Co. LLC.
The terms of the sales were not released.