Coal developer Coronado sells non-core Logan Mining Complex to focus on met coal
ASX-listed Coronado Global Resources has signed an agreement to divest ownership of its coal assets comprising the Logan Mining Complex, in West Virginia, in the US.
Coronado agreed to sell 100% of its interest in Coronado Coal – the entity holding the Logan Mining Complex – to Phoenix Coal Holdings, which is a Kentucky-based company owned by coal stalwart Mitch Potter.
The Logan Mining Complex comprises coal mining properties, leases, mining permits and related infrastructure, including a preparation plant and loadout facility.
The consideration for the sale will comprise of nominal cash together with the assumption by the purchaser of certain liabilities, including reclamation and post-closing operational obligations.
The transaction is expected to be free cash flow positive for Coronado, given the elimination of care-and-maintenance costs, holding costs and future obligations associated with the mine.
The sale aligns with Coronado’s ongoing strategy to optimise its asset portfolio and focus on core, higher-return metallurgical coal operations.
The companies expect the transaction to complete in July.
““This transaction represents a further step in streamlining Coronado’s portfolio and focusing on our high-quality core assets. The divestment transfers future obligations associated with Logan Mining Complex while enabling us to prioritise capital and operational focus elsewhere,” affirms interim CEO Gerry Spindler.
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