Coal Company Spills into Indiana James River Coal Co. Buys Coal Reserves, Pike County Rail Facility
Posted on: Saturday, 4 March 2006, 00:00 CST
By BILL MEDLEY, Courier & Press staff writer 464-7519 or medleyb@courierpress.com
A Virginia company is expanding its reach in southern Indiana with the purchase of a Pike County rail facility and more than 16.5 million tons of coal reserves.
James River Coal Co., based in Richmond, Va., announced this week it had purchased the reserves and a rail loadout facility from Indiana Land and Mineral Co. for $9 million in cash.
The coal consists of 15.8 million tons of underground reserves located in Warrick and Pike counties and 750,000 tons of surface reserves located in Pike County.
The company did not provide any other details regarding the location of the reserves or the rail facility. A call to a James River Coal spokeswoman was not returned.
A representative from Indiana Land and Mineral Co. also could not be reached Thursday. According to the U.S. Mine Safety and Health Administration, the company is in charge of two nonproducing surface coal mines near Oakland City, Ind., and Petersburg, Ind.
In a statement, James River Coal officials said the purchase was part of a company strategy that includes plans to expand in the Tri- State.
"This transaction represents the next phase in our strategic plan to expand mining operations in the fast-growing Illinois Basin," James River Coal chairman and CEO Peter Socha said.
Last year, James River Coal acquired Triad Mining of Owensboro, Ky., in a deal that included $64 million in cash and $11 million of common stock. Triad operated one underground and six surface mines in southern Indiana.
The recently purchased reserves "are all located in close proximity to the existing mines of our Triad Mining subsidiary in southern Indiana," Socha said in the statement. "The rail loadout facility will allow us to increase our shipments to existing customers in the Illinois Basin."
The facility also provides a connection to the CSX and Norfolk Southern networks, Socha said.
This week's purchase was the second multi-million dollar deal to impact the southern Indiana coal industry this year. In January, Bronco Coal Co. of Arizona purchased the Hazleton mine in Gibson County from White River Coal for $35 million.
Source: Evansville Courier & Press
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