PERTH (miningweekly.com) – Junior White Energy on Monday said that it would exercise its option to acquire an opencut coal mine in the Central Appalachia region.
The miner would pay some $20-million to acquire privately held Mountainside Coal, which currently operates a series of coal mines in Kentucky and holds leases for a further 15 coal areas in Kentucky and Tennessee, four of which are licence permitted.
Mountainside currently produces some 400 000 t/y of coal from its three operating mines, and White Energy said on Monday that it would look to increase production at the mines, and would also process coal fines to increase the value of the operations.
Coal fines would be processed using binderless coal briquetting (BCB) technology that upgrades high moisture, low value coals through a process of dehydration and compaction.
“The acquisition of Mountainside Coal will be a significant milestone for White Energy, and will present an attractive revenue-generation asset for the company, while at the same time providing an opportunity to showcase BCB technology in the key market of the US,” said White Energy MD Brian Flannery.
He noted that White Energy was currently in discussions with third parties on a potential joint venture investment in Mountainside Coal.
The company now had 30 days to enter into formal documentation and to complete the purchase of Mountainside Coal stock.
The acquisition was subject to a number of conditions, including a due diligence.