Houston, US-based mining coal miner Natural Resource Partners L.P. (NRP) and Tennessee, US-based packaging company International Paper Company (IP) on June 10 announced that they have completed the formation of a joint venture to own and manage the current leases as well as the further development of the more than 7 million mineral acres (28.330 km2) previously held by International Paper.
NRP will be the managing and controlling partner with a 51 percent interest. In connection with the formation of the joint venture, NRP has paid IP $42.5 million, $30 million of which was funded from NRP's credit facility and the remainder from cash.
The areas are located in 31 states and consist of reserves of oil and gas, coal and aggregates, as well as the rights to develop coal bed methane, geothermal, CO2 sequestration, water rights, cell towers, precious metals, industrial minerals and base metals.