Alpha sells coal and natural gas assets in West Virginia
Alpha Natural Resources announced the sale of a coal mining complex and a natural gas operation in West Virginia on Tuesday.
The Kingsport-based company said that the Greene Valley mining assets in Nicholas and Greenbrier counties are being sold to Quinwood Coal Company.
The New River Energy natural gas operation, which includes 120 natural gas wells in five counties, is being sold to Kinzer Drilling.
"With these significant divestitures, we will transfer 28 mining-related permits, reduce surety bonding by approximately $3.5 million, eliminate future reclamation spending at these sites, and further reduce our annual holding cost for inactive and idle properties by approximately $1.1 million, Alpha CEO David Stetson said. "Additionally, $2.7 million in self bonding will be eliminated as part of these sales which will assist Alpha in meeting its obligations to the state of West Virginia."
"As with previous divestitures, Alpha has been able to enter into agreements with third parties that have indicated a desire to restart these operations and restore many jobs to the local community," Stetson added.
Stetson also indicated the company will continue to pursue sales of other non-strategic assets in the coming months.