Severstal Resources is a division of OAO Severstal, which is acquiring PBS through its takeover of parent company Penfold Capital Acquisition Corporation.

PBS operations produce 4 million tons of metallurgical coal per annum from the central Northern Appalachian region.

The miner’s holdings include six underground and six surface operations.

“To keep pace with the global growth of the steel industry, our mining business is capitalising on the opportunity to expand into a new geographic market, gain access to export markets and diversify its mining technologies,” said Severstal CEO Roman Deniskin.

“Our significant experience with coal mining in Russia leaves us well positioned to make the most of our acquisition of PBS, ensuring its continued growth by providing additional management and operational expertise."

While the deal is subject to approvals, Severstal said it expected the transaction to close by mid-October. At its close, PBS will operate as a Severstal Resources business unit.

One of PBS’s mines, Quecreek, became well known globally when nine workers were trapped there in 2002 and emerged alive.