Arch Coal has sold its Hazard mining complex in eastern Kentucky to Blackhawk Mining LLC for $26.3 million, the St. Louis-based coal producer said Wednesday.
The complex is made up of four active surface mines -- East-Mac & Nellie, Rowdy Gap, Bearville and Thunder Ridge -- as well as the Teton prep plant and the Kentucky River Loading facility. The sale also includes roughly 38 million st of thermal coal reserves.
The Hazard complex sold 1.7 million st of thermal coal and generated $4.8 million in gross earnings in 2013, according to Arch.
Data from the US Mine Safety and Health Administration shows the four mines produced about 1.79 million st in 2013, down from about 2.14 million st in 2012.
Arch CEO John Eaves said the sale is part of the company's ongoing effort to streamline its mining portfolio and monetize assets that are not essential to its future growth plans.
"This transaction allows us to further sharpen our focus on strategic assets that have the highest return potential, such as our growing Appalachian metallurgical coal franchise and our low-cost Western thermal coal platform," Eaves said.
Coal from Central Appalachian mines, such as Hazard, are most vulnerable to low natural gas prices, given the region's high production costs.
The sale of the Hazard complex follows a sale last August of its Utah mining operations to Bowie Resource Partners for $423 million in cash.
Officials with Lexington, Kentucky-based coal producer Blackhawk were not immediately available for comment Wednesday. The company currently operates two surface mines -- Blackhawk #2 and Blackhawk #4, both in Floyd County, Kentucky -- that, combined, produced 503,341 st last year, according to MSHA.
