Metallurgical coal miner Contura Energy has closed its transaction with Iron Senergy Holding for the divestment of the Cumberland thermal coal mine and related assets in Greene county, Pennsylvania.
The subsidiaries that hold the Cumberland and Emerald mines and the associated coal reserves, mining permits, and operations, infrastructure, equipment and transloading facilities have transferred to Iron Senergy, effective December 10.
"This mutually beneficial transaction with Iron Senergy extends the runway for Cumberland under its new ownership, and today's closing is the culmination of many months of hard work from our respective teams," said Contura chairperson and CEO David Stetson.
The transaction is in line with Contura's vision of sharpening its company's focus on producing metallurgical products used in steelmaking.
Iron Senergy has expressed its intention to continue operating the Cumberland mine beyond 2022, thereby extending employment opportunities for the Cumberland workforce, providing a continued tax base for the local community and sustaining business opportunities for Cumberland's vendors and a reliable fuel supply for customers.
Closing of the transaction released Contura from all reclamation obligations associated with the Pennsylvania Entities, which are estimated to be about $169-million of undiscounted future cash outflows. These obligations have been assumed by Iron Senergy.