NRP seals Cline subsidiary buy

MASTER limited partnership Natural Resource Partners has completed the acquisition of all membership interests in two entities of Cline Group division Adena Minerals.
NRP seals Cline subsidiary buy NRP seals Cline subsidiary buy NRP seals Cline subsidiary buy NRP seals Cline subsidiary buy NRP seals Cline subsidiary buy

A Natural Resource Partners property. Courtesy NRLP

Donna Schmidt

The newly acquired companies hold both coal reserves and infrastructure, including beltlines and a barge loadout at Cline's Yellowbush operation in Meigs County, Ohio.

NRP will issue 4.56 million common units and give an additional 9% general partner interest to Adena as part of the agreement.

“Coal reserves are being produced, processed and sold currently and will immediately generate coal royalties and transportation and handling fees for NRP,” the company said.

In December 2007, NRP announced it had joined forces with Cline to mine 49 million tons of coal reserves in West Virginia and Illinois.

"The Cline Group is well known within the coal industry as a great developer of coal mines and a low-cost operator,” NRP chief Nick Carter said at the time.

“Their large reserve base, active development plans and the growing market for higher sulfur coals should provide NRP significant opportunities for growth and diversification in the years to come."

As part of that deal, NRP announced it would purchase the 100Mt reserve base and transportation infrastructure of Cline's Gatling Ohio complex.

NRP is based in Texas, though its operations are headquartered in Huntington, West Virginia.