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Consol is moving into the gas space and has already spun off several of its coal operations to CNX.
It is selling its Miller Creek Mining Complex and Fola Mining Complex, ICN understands to Booth Energy, and to “equalise” the deal it will pay $27 million cash at closing and an additional $17 million in instalments over the next four years.
Miller Creek is located in West Virginia and has a surface mining operation that produced 2.1 million short tons of coal in 2015 along with two idled underground mines.
Fola is a closed surface mining operation in West Virginia.
Together they have 114 million tons of owned and leased coal reserves and $103 million of mining closing and reclamation liabilities on Consol’s balance sheet.
The $44 million Consol is paying will be an additional loss Consol expects to record in the third quarter.
