Alpha Natural Resources has handed over control its Green Valley mining complex in West Virginia to Quinwood Coal Company as it continues to trim assets since emerging from Chapter 11 bankruptcy, Alpha said Tuesday.
Alpha called the move a "divestment" of property but fell short of calling it a sale, and did not disclose details of the transaction. The miner made a similar move in November when it sold substantially all the assets of affiliate Enterprise Mining Corporation in eastern Kentucky to Kingdom Coal, a subsidiary of Keystone-Kingdom Resources.
Alpha CEO David Stetson said in a statement that Alpha will "continue to pursue sales of other non-strategic assets in the coming months."
The deal comprised of 28 mining-related permits including the Grassy Creek No. 1 and Hominy Creek metallurgical mines. Alpha idled Grassy Creek and Hominy Creek on May 3, 2014, because of dropping prices in the seaborne met market.
In 17 years of full production, Grassy Creek averaged 400,000 st/year and reached a peak of 610,960 st in 2006, according to Mine Safety and Health Administration data. Hominy Creek averaged 205,000/year in five years of full production with a peak of 244,000 st in 2009.
Grassy Creek and Hominy Creek were included in a list of assets Alpha was marketing for auction during its bankruptcy reorganization. That auction was canceled after the company said there were not "multiple competing and comparable bids" for the same asset. The miner emerged from bankruptcy July 26, 2016, as a smaller, privately company.
Alpha also announced Tuesday it sold its New River Energy natural gas operation, which includes 120 wells in five West Virginia counties, to Kinzer Drilling for an undisclosed sum.
Stetson said the "significant divestitures" will reduce Alpha's surety bonding by about $3.5 million, further reduce annual holding costs for inactive and idle properties by about $1.1 million, eliminate $2.7 million in self bonding associated with the sites and cut all reclamation costs tied to the properties.
