NEMI will receive a 20% interest in the partnership, while Anglo and Hillsborough will receive a 60% and 20% interest respectively.

Under the agreement, NEMI will contribute all of its coal assets, comprising the Trend coal property and related assets, including coal preparation plant and rail load-out, plus its 50% interest in the Belcourt Saxon limited partnership.

Hillsborough and Anglo Coal will contribute their respective interests in their coal assets, being the Horizon property group and the Murray River property group plus Hillsborough’s Bickford property.

Each company’s assets have been weighted on several factors before determining their value in the partnership.

“The combining of NEMI's assets with the Anglo and Hillsborough assets will be the next step in forming a viable northeast coal producer,” NEMI president Patrick C Devlin said.

“We expect the synergies created by the three parties combining their assets, resources and expertise will enhance the value of NEMI's assets and will benefit all of NEMI's stakeholders.”

The transaction is scheduled to close before the end of the year, subject to a number of conditions.