Alliance Resource Partners, L.P. today announced that Alliance Resource Properties, LLC, its indirect subsidiary, has acquired from Consol Energy, Inc. the rights to approximately 78.4 million tons of high-sulfur coal reserves in Webster and Hopkins County, Kentucky for $53.3 million cash paid at closing.
The Partnership financed the purchase using a combination of existing cash on hand and borrowings under its revolving credit facility.
As a result of the purchase, the Partnership gained control of approximately 78.4 million tons of coal in the Kentucky No. 9, No. 11 and No. 13 coal seams, along with related surface properties. Additionally, as a result of this transaction the Partnership will reclassify 8.4 million tons of high-sulfur non-reserve coal deposits as reserves, increasing the Partnership’s current reserves by approximately 14% to an estimated 710 million tons.
The acquired coal reserves encompass approximately 13,500 acres located in Webster and Hopkins County, Kentucky. The Partnership intends to mine these reserves from its adjacent Dotiki and Warrior mining complexes utilizing continuous mining units employing room-and-pillar mining techniques.