Corsa Coal Corp. announced Wednesday that it is selling its thermal and industrial coal division, Central Appalachia (CAPP), to a buyer group led by CAPP's current management team.
CAPP division's current operations include one underground mine, the Cooper Ridge Deep Mine, and two surface operations, the Valley Creek and Buffalo Creek mines. The consideration to be received by the company in connection with the transaction consists of the assumption by the buyer group of certain debt, leases and future costs, including end of mine closure costs, estimated in the aggregate by the Company at approximately $8.0 million.
For the year ended December 31, 2017, the CAPP division generated revenues of $46.4 million and had $20.2 million of negative EBITDA, inclusive of a $20.0 million asset impairment; and sold 539,000 tons of thermal coal and 135,000 tons of high volume metallurgical coal.
"The sale of our CAPP division will allow us to dedicate all of our corporate resources to the metallurgical coal market where we believe we can achieve the highest rates of return on investment," said George Dethlefsen, the Company's Chief Executive Officer. "Corsa's focus going forward is to aggressively increase its metallurgical coal production, maximize value added services activity, and continue to grow our metallurgical sales and trading platform."