Contura Energy announced today that they’ve entered into an agreement with Eagle Specialty Materials, LLC, an affiliate of FM Coal, LLC, to acquire and operate Belle Ayr and Eagle Butte coal mines in Campbell County.
“We’ve been clear that operating long-term in the PRB was not in Contura’s strategic plans, and that the best possible outcome for all interested parties would be for another responsible operator to step up that was interested in doing just that,” said David Stetson, chairman and chief executive officer, in the press release. “We are extremely pleased that this deal outlines a path to relieve Contura from any go-forward liabilities related to these assets, while also providing long-term employment opportunities for hard-working miners and ongoing revenue to local, state, and federal governments.”
The newly announced agreement is still subject to the approval of regulatory and legal authorities. In addition to reaching agreements with debtors and other government entities and transferring the necessary leases and permits, other terms of the sale were laid out, including $90 million dollars in cash from Contura.
In return, Contura expects to receive approximately $9 million of cash collateral related to posted bonds.
Contura’s release said that Campbell County would receive $13.5 million for back ad valorem taxes.
Contura was named the stalking horse bidder by Blackjewel during their Chapter 11 bankruptcy proceedings in which no other interested parties emerged for what became to be known as the western assets.
Approximately 600 coal miners in Campbell County have been out of work since the mines closed their gates July 1.