KINGSPORT, TN (WJHL) – Alpha Natural Resources announced Tuesday morning it has sold two of its assets — both of which are located in West Virginia.
The company said it is divesting, “substantially all of the assets of two separate operations, a coal mining complex and a natural gas operation, both located in central West Virginia.
The Green Valley mining complex are being sold to Quinwood Coal Company. The deal includes a preparation plant and permits. The site has been sitting idle since spring of 2014.
New River Energy, a natural gas operation, is being sold to Kinzer Drilling The deal includes 120 producing natural gas wells in five counties.
“With these significant divestitures, we will transfer 28 mining-related permits, reduce surety bonding by approximately $3.5 million, eliminate future reclamation spending at these sites, and further reduce our annual holding cost for inactive and idle properties by approximately $1.1 million,” Alpha CEO David Stetson said. “Additionally, $2.7 million in self-bonding will be eliminated as part of these sales, which will assist ANR in meeting its obligations to the State of West Virginia.”
Also included in the deals is a promise to restart operations and bring back jobs.
Stetson added, “As with previous divestitures, Alpha has been able to enter into agreements with third parties that have indicated a desire to restart these operations and restore many jobs to the local community.”