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Walter subsidiary United Land Corporation will acquire Tuscaloosa Resources, which controls approximately 10 million tons of coal reserves.
Tuscaloosa Resources mines are located in Brookwood, Alabama, close to Jim Walter Resources' existing infrastructure, which will provide numerous synergies, including opportunities to blend coal production.
The company also announced a $25 million share repurchase program, which reflects the board's confidence in the long-term outlook of the metallurgical coal miner.
Walter Industries chairman Michael Tokarz said the company's strong cash flows have allowed for strategic investments and acquisitions as well as the capital to buy back shares.
