|
Walter Energy, the world's leading, publicly traded "pure play" producer of metallurgical coal for the global steel industry, announced the execution of mineral leases for approximately 75 million tons of recoverable Blue Creek coking coal reserves in Tuscaloosa County, Ala. from a subsidiary of Chevron Corporation.
Terms of the leases include royalty rates consistent with existing coal lease agreements. "We are happy with the opportunities these leases present to grow our reserve base and expand our footprint in Alabama," said Keith Calder, chief executive officer of Walter Energy. "These reserves are an integral portion of the last remaining block of Blue Creek coal reserves and pave the way for a strategic opportunity to assemble approximately 170 million tons of high quality coking coal reserves for the development of a new underground longwall coking coal mine." The Company also announced the completion of Jim Walter Resources' acquisition of Chevron's North River steam coal mine in Fayette County and Tuscaloosa County, Ala. Total consideration for the purchase of the North River mine included a small cash payment and the assumption of certain liabilities, not material to the Company. The transaction is expected to be neutral to slightly accretive to earnings in the first year. "The North River steam coal mine has approximately three years of production remaining, all of which is under contract to local utilities," Calder added. "Importantly, the operation has approximately 350 skilled and experienced miners, whom we'll be very happy to welcome into the Walter Energy Alabama team." |
