The report is the latest in a flurry of domestic and international merger and acquisition talks across the US. Walter Energy announced a bid late last week for Western Coal while Coal India has confirmed it is considering an asset purchase from Massey Energy.
According to Bloomberg, Consol chief financial officer Bill Lyons told an industry conference in New York last week that the company might receive up to $US150 per ton, or might keep the reserves and join with another company for a joint venture.
Consol may also decide to develop the reserves, which are located in southern West Virginia and are contained mostly in the Amonate property, on its own.
The company reportedly intends to make a decision by the end of January.
Lyons said potential buyers had shown interest in the property, but he did not identify any specific companies. He estimated that, assuming the $150/t price, a sale could add up to $350 million to Consol’s earnings.
A Consol spokesperson did not return an ILN request for comment or further details on the potential deal.