International Coal Group, Inc. has announced that it has acquired the former
Powell Mountain mining operations located in Lee County, Virginia, and
Harlan County, Kentucky. The newly acquired assets include substantial coal holdings that are estimated to include approximately 29 million tons of high quality coal reserves, and 47 million tons of non-reserve coal deposits.
The transactions were concluded through the purchase of the membership
interests of Powdul Acquisition LLC, and the leasing of coal reserves from Dulcet Acquisition LLC, an affiliate of Penn Virginia Resource Partners, L.P
ICG expects to begin coal production from the Darby seam deep
Mine - previously idle in June 2008. The Darby mine coal quality is well suited to service both the compliance utility market and the high-volatile metallurgical market. ICG projects that, at full production, this mining complex will produce and ship over one million tons of coal annually.
Terms of the transaction were not disclosed.
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