TORONTO (miningweekly.com) – US fossil fuels producer Consol Energy has strengthened its balance sheet by about $101-million after selling two assets in separate transactions and will use the proceeds to reduce debt.
NYSE-listed Consol sold its 49% interest in the Western Allegheny Energy (WAE) joint venture to Rosebud Mining Company. The WAE transaction included the conveyance of 63-million tons of coal reserves and closed on September 30.
Separately, Pittsburgh, Pennsylvania-based Consol sold 6.7-million tons of lignite reserves in South Texas to a private entity. This transaction closed on October 6.
The total transaction proceeds included $95-million in cash, $2-million in the assumption of liabilities and $4-million of advance minimum royalties paid under the terms of leases.
Consol expected a $6-million earnings before interest, taxes, depreciation and amortisation contribution in 2016 related to the assets sold in the transactions.