Coal news and updates

JW Resources, Inc., (“JW Resources” or the “Company”), a privately held management and holding company owned by Bayside Capital, Inc. ("Bayside") and Lawrence M. Clark, Jr., announced today that through its newly-formed subsidiary Middlesboro Mining, Inc., (“Middlesboro”) it has completed the acquisition of the Bell County, Kentucky and Claiborne County, Tennessee thermal coal mining operations (the “Middlesboro Operations”) of Appolo Fuels, Inc. (“Appolo”), including approximately 33,000 acres containing an estimated 43 million tons of proven and probable high-quality thermal coal reserves in the Central Appalachian (“CAPP”) coal basin.

 

“We established JW Resources in partnership with Larry to acquire premier low-cost assets that are positioned to participate in the strong long-term global utility and industrial demand environment”

 

Middlesboro will primarily serve the industrial coal markets and is pleased to continue Appolo’s long-standing supply relationships with several “blue-chip” customers. Assets acquired in the transaction include all permits, contracts and real property leases associated with the Middlesboro Operations, as well as all related infrastructure, including a preparation plant, a fully permitted refuse facility with significant remaining useful life, and a dual-service unit train load-out facility providing access to both the CSX and Norfolk Southern rail networks. The Middlesboro Operations’ diverse mix of surface, highwall, and underground mines will be overseen by seasoned mining executive William R. “Bill” Snodgrass, who has managed the Middlesboro Operations in the past and is currently Chief Operating Officer of JW Resources.

JW Resources is a management and holding company focused on identifying, acquiring and operating coal mining and related assets in the United States. The Company is majority-owned by affiliates of Bayside and was formed and capitalized in partnership with Mr. Clark, an experienced institutional investor with a proven track record investing in the coal and natural resources sectors. JW Resources currently operates the Straight Creek and Red Bird thermal coal operations (the “Straight Creek Operations”) in eastern Kentucky, which were acquired in February 2013. Through the combined Straight Creek and Middlesboro Operations, JW Resources now controls approximately 81,000 acres containing an estimated 85 million tons of proven and probable thermal coal reserves serving the utility and industrial markets, as well as three unit train load-out facilities, two preparation plants, and three permitted refuse facilities.

Mr. Clark commented: "With Middlesboro’s stable industrial customer base and Straight Creek’s utility supply business, JW Resources now enjoys a diverse mix of customer and end-market exposure, all serviced from our high-quality and low-cost reserves. We are particularly excited to add Middlesboro’s unique dual-service rail load-out to our strong collection of infrastructure assets; having access to both the CSX and NS rail networks provides us a significant competitive advantage in serving current and future utility customers.”

“We established JW Resources in partnership with Larry to acquire premier low-cost assets that are positioned to participate in the strong long-term global utility and industrial demand environment,” said Sean Ozbolt, Managing Director at Bayside Capital. “After acquiring the Straight Creek Operations we evaluated more than 50 add-on acquisition opportunities, and ultimately identified the Appolo assets as the best fit due to their low-cost operations, complementary industrial customer base and close proximity to Straight Creek. JW Resources is now a world-class CAPP coal operation that is well positioned to benefit from the improving utility market and the highly stable industrial market.”

 

 

Source: http://www.pennenergy.com/