Arch Coal (OTC:ACIIQ) has removed an asset from its portfolio. The company announced that it has sold its Hazard unit to privately held Blackhawk Mining for $26.3 million in cash. The subsidiary's core asset is the Hazard thermal coal mining complex in western Kentucky and its related infrastructure, as well as roughly 38 million tons of thermal coal reserves in the eastern part of the state.
The deal also includes Arch Coal's release of $15.6 million in reclamation liabilities to Blackhawk Mining. It subsequently expects to be released from $43.8 million in reclamation surety bonding. Additionally, Arch Coal stands to receive up to $35 million in royalty payments from select coal reserves it maintains at Hazard.
News of the sale comes less than a month after Arch Coal announced it had sold its mining equipment subsidiary ADDCAR. The firm divested that unit to Australia-based UGM Holdings for a total of $21 million.