The company whose affiliates include Birmingham Coal & Coke, Cahaba Contracting & Reclamation and RAC Mining previously financed its significant equipment fleet through dealers and local Alabama banks.
The new agreement accounts for all of the group’s equipment loans over a term of 54 months at an annual interest rate of 3.25%.
The arrangement with a bank the company has only described as one of the 20 largest in the US is expected to reduce the miner’s annual loan payments by $800,000 and lower interest charges by a $200,000.
“This represents another major milestone for our company,” CanAm president and chief operating officer Jos De Smedt said.
“Attracting a major US financial institution … is a clear demonstration that we have built a stable and solid business with a great long-term future.”
CanAm’s main activities and assets include its four operating coal mines in Alabama and the Buick Coal Project in Colorado which holds significant coal resources, 188 million tons indicated and 103Mt inferred coal resources.
