US miner Corsa Coal is selling its thermal and industrial coal division in Central Appalachia to focus purely on metallurgical coal, where it is growing production of low-vol coal and sales, it said Thursday.
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Corsa will sell the CAPP assets to a group led by the company's current management team, with Hunter Hobson the division's president.
TSX Venture Exchange-listed Corsa operates coking coal mines and facilities in Pennsylvania and Maryland, and supplies coal directly and via traders to customers in Europe, Asia, and South America, as well as the US.
"The sale of our CAPP division will allow us to dedicate all of our corporate resources to the metallurgical coal market, where we believe we can achieve the highest rates of return on investment," Corsa CEO George Dethlefsen said.
"Corsa's focus going forward is to aggressively increase its metallurgical coal production, maximize value added services activity, and continue to grow our metallurgical sales and trading platform," he added.
Keith Dyke, former president of the company's CAPP division, and the buyer received financing from entities controlled by a member of the Robertson family, it said.
The Robertson family controls the general partner of Quintana Energy Partners and its affiliated investment funds. Quintana currently controls around 41% of Corsa Coal's issued and outstanding common shares.