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>>

  • One man shot early Saturday morning in Beckley

    One man shot early Saturday morning in Beckley

    Sunday, April 20 2014 5:43 AM EDT2014-04-20 09:43:44 GMT
         One man is in custody Saturday after a bar shooting in Raleigh County.
         One man is in custody Saturday after a bar shooting in Raleigh County.
  • Crews fight house fire in Fayette County for several hours Saturday

    Crews fight house fire in Fayette County for several hours Saturday

    Saturday, April 19 2014 11:24 PM EDT2014-04-20 03:24:33 GMT
    Crews fought a house fire in Fayette County Saturday evening for several hours. 911 Dispatchers said the call came in of a house fire on Paint Creek Road near Pax around 6:30 p.m. Pax Fire Department and Bradley-Prosperity Fire Department responded along with several other crews. We're told no one was inside the home when the fire happened.
    Crews fought a house fire in Fayette County Saturday evening for several hours. 911 Dispatchers said the call came in of a house fire on Paint Creek Road near Pax around 6:30 p.m. Pax Fire Department and Bradley-Prosperity Fire Department responded along with several other crews. We're told no one was inside the home when the fire happened.
  • Woman and husband charged for unintentional killing of son

    Woman and husband charged for unintentional killing of son

    Woman and husband charged for unintentional killing of son

    Saturday, April 19 2014 10:38 PM EDT2014-04-20 02:38:36 GMT
    A Shinnston woman and her husband have been charged with what authorities are calling the unintentional suffocation of her 3-month-old son.
    A Shinnston woman and her husband have been charged with what authorities are calling the unintentional suffocation of her 3-month-old son.

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.