Owner makes deal to sell Cumberland Mine
The owner of Cumberland Mine has reached a definitive agreement to sell the Greene County facility.
Contura Energy Inc. announced on its website Thursday that it has reached accord with Iron Senergy Holding LLC for divestment of its Pennsylvania operations. Those would include the property at Greene County’s Emerald Mine, which was shuttered almost exactly five years ago.
Bristol, Tenn.-based Contura will pay Iron Senergy $20 million in cash and $30 million as collateral for reclamation bonds needed to seal the deal, which is expected to occur by year’s end.
Contura, a top supplier of metallurgical products for steelmaking, announced in late June that it “plans to actively market” Cumberland Mine, and would close it by the end of 2022 if it did not find a buyer.
Iron Senergy, according to Contura, plans to continue operating the underground coal mine. An estimated 700 work at the facility in Franklin Township, outside Waynesburg, and is one of Greene’s largest employers.
David Stetson, Contura chairman and chief executive officer, said in a prepared statement: “In addition to the important benefits to Cumberland employees and the local community in Greene County, the signing of this agreement to divest Cumberland provides a way for both Contura and Iron Senergy to advance our respective strategic goals.
“This transaction allows Contura to nearly complete our move to a pure-play metallurgical company providing critical feedstock for steel production.”
Contura said Iron Senergy will assume reclamation obligations at Cumberland and Emerald at an estimated cost of $169 million. The Emerald site is in Jefferson Township.