Coronado Global divests US asset to focus on metallurgical coal
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The news: Coronado Global has divested 100% of its West Virginia- based mining complex to Phoenix Coal Holdings, with completion expected in July.
The context: The divestment of the Logan Mining Complex is expected to reduce ongoing maintenance costs and future obligations associated with the mine allowing Coronado to focus on its core metallurgical coal operations.
Coronado expects the sale to boost its cashflow and optimise its asset portfolio by prioritising higher-return operations. The company added that the transaction will not impact its near-term production guidance.
The Logan Mining Complex consists of coal mining properties, leases, mining permits and a loadout facility located across Boone, Logan and Wyoming counties in West Virginia.
What they said: “This transaction represents a further step in streamlining Coronado’s portfolio and focusing on our high-quality core assets,” Coronado interim CEO Gerry Spindler said.
“The divestment transfers future obligations associated with Logan while enabling us to prioritise capital and operational focus elsewhere,” he added.
The source: ASX
