The company confirmed that the assets in Daviess and McLean counties contain an estimated 30 million tons of non-reserve coal deposits. However, it also contains 12,100 leased acres contiguous to the Green River.

While the seller of the property was not disclosed, Rhino will secure a property that is undeveloped but fully permitted, giving it access to Illinois Basin coal reserves adjacent to a navigable waterway.

That benefit, officials said, would allow for enhanced export opportunity to non-US customers.

“We are pleased to make an acquisition that provides inland waterway access from the Illinois Basin,” general partner president and chief executive Dave Zatezalo said.

“This acquisition provides Rhino lower cost capability to develop a substantial footprint in a major coal producing basin, thus strengthening our product and market offerings.”

Rhino's operations are in central and northern Appalachia, the Illinois Basin and in the Western Bituminous region.

The company divested some of its non-core assets and liabilities in Phelps, Kentucky, last August in a $US20 million deal. It wanted to strengthen focus on met and pulverized coal injection projects.