Foresight Energy LP (fka FELPQ)

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Murray most recent acquisition into "metallurgical coal market"

Coal mining giant Murray Energy said last week it’s been selected as the successful bidder to acquire the Oak Grove, Seminole Alabama, and Maple Eagle Mining complexes in Alabama and West Virginia, from Mission Coal for $264.7 million, plus the assumption of roughly $70 million in reclamation liabilities.

Metallurgical coal or coking coal is a grade of coal that can be used to produce good-quality coke. Coke is an essential fuel and reactant in the blast furnace process for primary steelmaking. The demand for metallurgical coal is highly coupled to the demand for steel.

The company also owes $3.2 million to Natural Resource Partners, $2.1 million to Carter Machinery and roughly $2 million to Alabama Power.

Ohio-based Murray has formed a new, majority owned, unrestricted subsidiary company, Murray Metallurgical Holdings, to acquire and operate the Mission assets. Its existing joint-venture partner, Javelin Global Commodities (UK) Ltd., will be the minority owner of the newly formed, unrestricted subsidiary.

The bankruptcy court has scheduled a hearing tomorrow to approve the sale, and the deal is supposed to cvlose April 12.

Murray Energy’s acquisition of the Mission assets provides the Ohio-based company an entry into the metallurgical coal market, diversifying its portfolio from just thermal coal.

http://www.kallanishenergy.com/2019/04/02/murray-winning-bidder-for-bankrupt-mission-coal-assets/