Coal news and updates

BRISTOL, Tenn. — Bristol, Tennessee-based Contura Energy has found another company to buy a pair of coal mines in Wyoming and assume millions in reclamation obligations at the sites, according to a news release the company issued.

Contura previously owned the Eagle Butte and Belle Ayr mines in Wyoming before selling them to coal company Blackjewel LLC in December 2017. However, Blackjewel filed for Chapter 11 bankruptcy in July and Contura had not yet completed the process of transferring the permits for those mines to Blackjewel as the bankruptcy process started.

When Blackjewel started to auction off its assets in August, Contura placed a winning $33.75 million bid for the two mines and a Pax Surface Mine in West Virginia. Since then, the Pax Mine sale received bankruptcy court approval and closed Tuesday, according to the release, but Contura, Blackjewel and various local, state and federal regulatory agencies have not yet reached an agreement to finalize the terms of sale for the Wyoming mines.

In the proposed deal announced Wednesday, Contura would pay $90 million in cash to Eagle Specialty Materials LLC and convey certain Wyoming real property to the company. Contura would also pay $13.5 million to Campbell County, Wyoming for back taxes, the release states.

As part of its side of the agreement, Eagle Specialty Materials would, among other things, make a payment to Blackjewel — the amount of which has not been announced — and assume $237 million in reclamation obligations for the Wyoming mines.

The agreement is subject to approval by Contura’s board of directors and the U.S. Bankruptcy Court for the Southern District of West Virginia, which is overseeing Blackjewel’s bankruptcy. The transactions in the proposed deal would also require agreement from a number of third parties, the release states.

 

Source: https://www.heraldcourier.com