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Alpha now controls an additional 73 million tonnes previously held by the North Carolina-based Progress Energy subsidiary – the stock of Diamond May Coal and the assets of Kentucky May Coal. The price tag on the deal was $US23 million, which included an adjustment for working capital of $3.7 million.
Diamond May, which produced 3Mt last year, operates two surface and two underground operations in Kentucky, employing 380 non-union workers. While Kentucky May’s reserves account for an estimated 17.8Mt of the total acquired, it has no current active mines.
Alpha, which used a revolving credit facility to finance the acquisition, operates mines in four states and has a total payroll of more than 3700 employees.
