Consol announces closure on WV mine sales - Beckley, Bluefield & Lewisburg News, Weather, Sports

Consol closes on WV mine sale deal

Posted: Updated:
  • Local NewsLocal NewsMore>>

  • Virginia shoppers can save big bucks on Back-to-School items during Tax-Free Weekend

    Virginia shoppers can save big bucks on Back-to-School items during Tax-Free Weekend

    Wednesday, July 30 2014 6:58 PM EDT2014-07-30 22:58:59 GMT
    Believe it or not, some students in our area are going back to school next week. For parents struggling to buy school supplies, Virginia is offering a tax-free holiday. 
    Believe it or not, some students in our area are going back to school next week. For parents struggling to buy school supplies, Virginia is offering a tax-free holiday. 
  • Preps are underway for the 90th annual Mercer County Fair

    Preps are underway for the 90th annual Mercer County Fair

    Wednesday, July 30 2014 6:47 PM EDT2014-07-30 22:47:20 GMT
    If you're looking for something fun to do this weekend, we just might have an event for you. The 90th annual Mercer County Fair is coming to town this weekend.
    If you're looking for something fun to do this weekend, we just might have an event for you. The 90th annual Mercer County Fair is coming to town this weekend.
  • Flag cut down at Raleigh County Public Library in Beckley

    Flag cut down at Raleigh County Public Library in Beckley

    Wednesday, July 30 2014 6:42 PM EDT2014-07-30 22:42:13 GMT
     The incident happened at midnight between Sunday, July 27 and Monday, July 28. Officials with the library said that a person stood outside the library a made sure that no one was inside at the time.
     The incident happened at midnight between Sunday, July 27 and Monday, July 28. Officials with the library said that a person stood outside the library a made sure that no one was inside at the time.

Consol Energy Inc. announced Dec. 5 it had closed on its late-October agreement to sell its Consolidation Coal Company subsidiary to a Murray Energy Corporation at a value of $3.5 billion.

The sale includes all five of its longwall coal mines in West Virginia.

Consol announced Dec. 2 it had passed the federal antitrust waiting period.

Included in the proposed sale are Consol's Shoemaker Mine in Benwood, Robinson Run Mine near Mannington, Loveridge Mine in Fairview, McElroy near Moundsville and Blacksville No. 2, which straddles the West Virginia-Pennsylvania border.

Murray Energy also will acquire 1.1 billion tons of Consol's high quality, low-sulfur Pittsburgh No. 8 seam reserves in addition to its river and dock operations, a network of 21 towboats and 600 barges that transported 19.3 million tons of coal and other commodities along the upper Ohio River system last year.

"The completion of this complex transaction this year enables us to enter 2014 with our focus of achieving our gas growth production targets of 210-225 Bcfe for 2014 and 30 percent annual gas production growth in 2015 and 2016," said Consol Chairman and CEO J. Brett Harvey.

The total consideration paid in the transaction includes $850 million in cash paid at the closing and future payments expected to total nearly $18.4 million in value, resulting from the retention of a royalty on select reserves and tolling fees at Consol's Baltimore Terminal.

Murray Energy also is acquiring $2.4 billion on Consol's balance sheet liabilities as well as Consol's UMWA 1974 Pension Trust obligations, which currently value about $94.1 million.