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.