Alpha to Transfer Idle Assets, Eliminate Self-bonding in West Virginia
Alpha Natural Resources plans to pay Lexington Coal Co. (LCC) to take its idled assets. Included with these properties, which are located in Kentucky, Illinois, Tennessee and West Virginia, are approximately 280 permits, substantial reclamation equipment, ongoing royalty payments associated with these properties and 100 million tons of reserves. While the specific economic terms were not disclosed, LCC will receive approximately $204 million in cash at the time of closing and $112 million in installment payments to assist in the fulfillment of bonding, reclamation, water treatment and other obligations associated with the conveyed properties and permits.
CONSOL Files Plans to Spin Off Coal Business
In mind-July, CONSOL Energy filed the necessary paperwork with the U.S. Securities and Exchange Commission (SEC) to split the company into two publicly traded companies, a coal company and a natural gas exploration and production (E&P) company. The spin-off would provide current shareholders ownership in two companies, each positioned to capitalize on distinct opportunities for future growth and profitability, the company said.
“Today’s filing represents a significant step toward completing the company’s separation, with both entities being well-capitalized and free cash flow generating,” said Nicholas J. DeIuliis, president and CEO. “This strategic separation will enable both businesses to focus on their inherent strengths and unlock value for their shareholders.”
India’s Utility NTPC Bets Big on Coal
Contrary to the government’s avowed policy, coal will continue to remain the mainstay of India’s largest power generation company, NTPC Ltd. The company is forging ahead to become the country’s second largest coal miner after Coal India Ltd. with plans for large investments in new coal-fired thermal power plants.
Having made a mark as a coal producer from its captive coal mines in the current fiscal year, NTPC Ltd. aims to achieve coal production of 107 million metric tons per year (mt/y) over the next few years.