SunCoke Energy buys Harold Keene Coal Co.
- January 17, 2011
Philadelphia-based SunCoke Energy, a subsidiary of Sunoco Inc., has purchased Honaker, Va.-based Harold Keene Coal Co. Inc. for about $40 million in cash.
The Russell County coal company has total coal reserve assets estimated at least 16 million tons. Final estimates will be confirmed by a reserve study that is now under way.
“This acquisition significantly increases SunCoke Energy’s coal reserves, representing an important step forward in building the value proposition we offer customers,” said Frederick A. “Fritz” Henderson, who will serve as chairman and CEO of SunCoke Energy upon its planned separation from Sunoco. “Given its contiguous nature, we believe we can manage this acquisition effectively as part of our existing Jewell coal and coke operations in Vansant, Va., allowing us to create immediate value for the business.”
The deal includes two active underground mines and one active surface and high-wall mine. They now produce 250,000 to 300,000 tons of coal annually and have the potential to expand production in the future, SunCoke said.