JOHANNESBURG (miningweekly.com) – TSX-V-listed Corsa Coal is selling its thermal and industrial coal division Central Appalachia (CAPP) to a buyer group led by CAPP's current management team.
"The sale of our CAPP division will allow us to dedicate all of our corporate resources to the metallurgical (met) coal market where we believe we can achieve the highest rates of return on investment," CEO George Dethlefsen said on Wednesday.
Corsa’s focus going forward is to aggressively increase its met coal production, maximise value-added services activity and continue to grow its met coal sales and trading platform.
The CAPP division's current operations include the Cooper Ridge Deep underground mine and the Valley Creek and Buffalo Creek surface operations.
As purchase consideration for the division, the buyer group will assume certain debt, leases and future costs, including end-of-mine closure costs, which have been estimated at about $8-million.