The assets include a modern preparation plant and rail loadout located near St Charles, Virginia, with dual rail service via the Norfolk Southern and CSX railroads; an idle underground mine in the Darby seam, along with related mining equipment; and a permitted underground mine in the Middle Splint seam.
The deal also sees ICG pick up substantial coal holdings estimated to include approximately 29 million tons of high-quality coal reserves and 47Mt of non-reserve coal deposits, which may be classified as reserves in the future as additional drilling and geological analysis is completed.
The company expects to begin coal production from the Darby seam deep mine next month.
ICG said it expects to produce and ship more than 1Mt of coal annually from the mine.
“This transaction allows the company to extend its Central Appalachian marketing reach and to increase production of metallurgical and high-quality steam coal promptly,” ICG chief executive Ben Hatfield said.
“Moreover, the transaction was structured in a manner that achieves additional production without substantial front-end capital outlays.”
ICG already has 13 active mining complexes, of which 12 are located in Northern and Central Appalachia with one in Central Illinois.