Consol to buy AEP mines

CONSOL Energy and American Electric Power (AEP) have entered a coal supply agreement which includes the purchase of AEP’s mines in Ohio and West Virginia.

Staff Reporter

Under the memorandum of understanding, AEP proposes to enter into coal supply agreements with CONSOL Energy to purchase approximately 34 million tons of coal to be supplied by the AEP affiliated mines and by CONSOL Energy subsidiary mines through 2008.

 

The coal would be utilised at various AEP coal-fired power plants, including the Muskingum River, Cardinal and Gen James M Gavin plants.

 

CONSOL Energy proposes to purchase the stock of Windsor Coal Company, Southern Ohio Coal Company and Central Ohio Coal Company.

 

AEP’s mines have meanwhile been idled, pending the outcome of the deal.