The Coalgood assets include a permitted surface mine operation that has been idle since 2012 and nearly 12 million t of high quality thermal coal reserves, and JRL has indicated its plan to operate the assets.
Alpha CEO, David Stetson, said: "The divestiture of the Coalgood mining complex represents our ongoing dedication to our strategic plan regarding idled assets, which has been to identify non-strategic properties for divestiture, thereby allowing Alpha to reduce its footprint. In this case, we will transfer six permits, reduce bonding by US$6 million and also reduce our ARO in future years by a significant amount."
Stetson adds that the divestiture of non-strategic properties will also allow Alpha to reduce the ongoing maintenance and holding costs associated with non-operating mining complexes. Coalgood was one of the few remaining Kentucky assets in the Alpha portfolio, all currently idled.
Terms of the transaction were not released.
