Consol to sell coal portfolio in West Virginia

Posted October 28, 2013

Paul J. Gough
Pittsburgh Business Times

Consol Energy Inc. said Monday it would sell its five longwall mines in West Virginia to Murray Energy Corp. for $850 million in cash plus the transfer of $2.1 billion in pension and other liabilities.

The five mines, the Consolidation Coal Co. portfolio, produced about 28.5 million tons of thermal coal in 2012 and have about 1.1 billion tons of Pittsburgh No. 8 seam reserves. The transaction also includes its river and barge fleet that transport coal up and down the Ohio River.

The mines are McElroy Mine, Shoemaker Mine, Robinson Run Mine, Loveridge Mine, and Blacksville No. 2 Mine, all in West Virginia.

“While this transaction furthers Consol’s E&P growth strategy, the sale of these five mines – assets that have long contributed to America’s economic strength and our company’s legacy – was a very difficult decision for our team," said Consol Energy CEO J. Brett Harvey in a prepared statement. "The employees at these mines are among the safest and most productive miners anywhere in the world. In the end, we concluded that the time had come to sell these mature assets to ownership whose strategic direction is more aligned with those mines."