Contura Energy and Alpha Natural Resources merge to create US’ largest met coal producer
The Tennessee-based coal suppliers, Contura Energy and Alpha Natural Resources, have announced their merging, creating the largest producer of metallurgical (met) coal in the US.
The two firms were split in August 2015 due to Alpha filing for bankruptcy protection.
The agreement notes that Contura will own the majority share of the merger at 53.5%, with Alpha owning the remaining 47.5%.
Between the two firms, 12.6mn tonnes of met coal was sold last year, placing the merger ahead of Vancouver-based Coronado Resources Ltd.
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It is anticipated that the merger will list its common stock on the New York Stock Exchange following the finalising of the deal.
“While this transaction would probably not have been possible even a year ago, resurgent global coal markets, a tightened production profile by way of recent asset divestments made independently by both Alpha and Contura, and resulting potential cost synergies together provide an exciting opportunity for value creation through combining our respective operational portfolios,” commented Kevin Crutchfield, CEO of Contura Energy.
“The Contura team is excited to join forces with Alpha’s set of highly competitive coal operations and unify some of the best coal miners in the world under one organization.”
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