Richmond, Virginia, US-based coal producer INR Energy, LLC, and Cleveland, Ohio, US-based coal and iron ore pellet producer Cliffs Natural Resources Inc. have announced that they have entered into a definitive agreement for the former to sell its West Virginia coal mining operations to the latter.
Cliffs said it plans to finance the $757 million acquisition through available liquidity, including cash on hand and the company's $600 million credit facility. The transaction is expected to close within 60 days and is subject to customary closing conditions.
INR's high volatile metallurgical coal volume in 2011 is expected to reach 1.7 million mt while thermal coal is predicted to be 1.2 million mt. This reserve base would increase Cliffs' total global reserve base to over 175 million tons of metallurgical coal and over 57 million tons of thermal coal.