CONSOL Energy Inc. says it has completed the sale of subsidiary Consolidation Coal Company to Murray Energy.
The sale includes five longwall mines in West Virginia. They include the McElroy, Shoemaker, Robinson Run, Loveridge and Blacksville No. 2 mines.
The deal also gives Ohio-basedMurray Energy about 1.1 billion tons of coal reserves.
Murray Energy paid $850 million in cash and will take $2.4 billion in liabilities off CONSOL’s balance sheets.
Pennsylvania-based CONSOL said Thursday in a news release that Murray Energy also is taking on its pension obligations with the United Mine Workers of America.
The West Virginia mines produced a combined 28.5 million tons of thermal coal in 2012.
Tag: Murray Energy
Breaking down the Consol-Murray sale
Consol Energy is selling five of its long wall coal mines in West Virginia to Murray Energy. It’s a deal slated to cost more than $3 billion.
In the deal, Consol will get:
$850 million in cash;
Almost $200 million in value of future payments;
The acquisition of $2.4 billion in Consol’s liabilities, to Murray Energy.
In return,
Murray Energy will receive:
Almost 4,000 new employees;
6 more coal preparation plants;
5 more active mining complexes;
6 more longwall mining systems;
23 more continuing mining units;
1 reverse osmosis plant;
609 barges;
23 harbor boats and tow boats;
5 additional coal transloading facilities.
Sens. Joe Manchin and Jay Rockefeller have requested a meeting with Murray Energy to discuss the transition. Among the liabilities picked up by Murray are retiree health care plans by mining employees.
Rockefeller, Manchin eyeing CONSOL mine sale, Murray safety
West Virginia’s two U.S. senators say they’ll be watching closely to see how Ohio-based Murray Energy treats safety and the workforce of the five CONSOL Energy mines it’s buying.
Senators Joe Manchin and Jay Rockefeller have requested a meeting with Murray Energy to discuss the transition.
The companies announced the deal Monday for the sale of the Blacksville No. 2, Loveridge, McElroy, Robinson Run and Shoemaker mines.
Pennsylvania-based CONSOL said it wants to shift resources to natural gas development.
Manchin says CONSOL is an industry leader in mine safety, and he hopes Murray Energy will also put miners first.
Rockefeller says Murray Energy must make protecting workers and retirees a priority.
Murray Energy says it operates safe mines but cannot yet comment on its plans for the workforce.