LISLE, Ill.--(BUSINESS WIRE)--
SunCoke Energy, Inc. (NYSE: SXC) announced today that its wholly-owned
subsidiary, Jewell Resources, Inc., executed a definitive agreement to
sell 100 percent of its interest in the entities that make up the Harold
Keene coal companies (“HKCC”) to Omega Holdings, LLC (“Omega”) for
approximately $9.5 million. The deal, which is subject to Omega
obtaining acceptable third-party financing, is expected to be comprised
of a combination of cash, future tonnage-based royalty payments and the
assumption of $2.5 million of estimated reclamation obligations. Omega,
a privately held firm located in Cedar Bluff, Virginia, is a holding
company for various coal mining operations.
“Given the ongoing difficult coal price environment, we made the
strategic decision early in 2014 to sell or downsize our coal mining
operations,” said Fritz Henderson, Chairman and Chief Executive Officer
of SunCoke Energy, Inc. “Today’s sale aligns with this strategy. With
their nearby coal mining activities and familiarity with our operations,
Omega is a natural fit for this portion of our coal business. We will
continue to implement our Coal Mining business downsizing plans while
simultaneously pursuing a sale of all or other portions of our remaining
coal mining operations.”
HKCC has nearly 20 million tons of proven and probable coal reserves
located on approximately 250 acres in Russell and Buchanan counties,
Virginia. HKCC’s operations, which were largely idled in 2013, consist
primarily of high wall and deep mine reserves of hi-vol A and hi-vol B
metallurgical coals and thermal coal. This sale also includes HKCC’s
warehouse, two idled coal preparation plants and certain coal loadout
facilities.
The closing of this transaction will be conditioned upon Omega’s ability
to obtain adequate, third-party financing and is subject to regulatory
approvals and other customary closing conditions, including working
capital adjustments. This transaction is expected to close in first
quarter 2015.
UPCOMING EVENTS
We plan to issue fourth quarter 2014 earnings and provide 2015 guidance
before market opens on Thursday, January 29, 2015. Also on this date, we
expect to host an investor conference call, which will be webcast live
and archived for replay on www.suncoke.com.
Times and dial-in information for these conference calls and webcasts
will be provided in early January 2015.
SUNCOKE ENERGY, INC.
SunCoke Energy, Inc. (NYSE: SXC) is the largest independent producer of
coke in the Americas, with 50 years of experience supplying coke to the
integrated steel industry. Our advanced, heat-recovery cokemaking
process produces high-quality coke for use in steelmaking, typically
captures waste heat for derivative energy resale and meets or exceeds
environmental standards. Our U.S. cokemaking facilities are located in
Virginia, Indiana, Ohio and Illinois. Outside the U.S., we have
cokemaking operations in Vitoria, Brazil and Odisha, India. Our coal
mining operations, which have more than 110 million tons of proven and
probable reserves, are located in Virginia and West Virginia. In
addition, through our 56 percent ownership of SXCP, we have an interest
in SXCP's coal logistics business, which has the collective capacity to
blend and transload more than 30 million tons of coal annually. To learn
more about SunCoke Energy, Inc., visit our website at www.suncoke.com.
FORWARD LOOKING STATEMENTS
Some of the statements included in this press release constitute
“forward looking statements” (as defined in Section 27A of the
Securities Act of 1933, as amended and Section 21E of the Securities
Exchange Act of 1934, as amended). Forward-looking statements include
all statements that are not historical facts and may be identified by
the use of such words as “believe,” “expect,” “plan,” “project,”
“intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,”
“may,” “will,” “should” or the negative of these terms or similar
expressions. Forward-looking statements are inherently uncertain and
involve significant known and unknown risks and uncertainties (many of
which are beyond the control of the Company) that could cause actual
results to differ materially.
Such risks and uncertainties include, but are not limited to domestic
and international economic, political, business, operational,
competitive, regulatory and/or market factors affecting the Company, as
well as uncertainties related to: pending or future litigation,
legislation, or regulatory actions; liability for remedial actions or
assessments under existing or future environmental regulations; gains
and losses related to acquisition, disposition or impairment of assets;
recapitalizations; access to, and costs of, capital; the effects of
changes in accounting rules applicable to the Company; and changes in
tax, environmental and other laws and regulations applicable to the
Company’s businesses.
Forward-looking statements are not guarantees of future performance, but
are based upon the current knowledge, beliefs and expectations of
Company management, and upon assumptions by the Company concerning
future conditions, any or all of which ultimately may prove to be
inaccurate. The reader should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. The Company does not intend, and expressly disclaims any
obligation, to update or alter its forward-looking statements (or
associated cautionary language), whether as a result of new information,
future events or otherwise after the date of this press release except
as required by applicable law.
In accordance with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, the Company has included in its filings
with the Securities and Exchange Commission cautionary language
identifying important factors (but not necessarily all the important
factors) that could cause actual results to differ materially from those
expressed in any forward-looking statement made by the Company. For
information concerning these factors, see the Company’s Securities and
Exchange Commission filings such as its annual and quarterly reports and
current reports on Form 8-K, copies of which are available free of
charge on the Company’s website at www.suncoke.com.
All forward-looking statements included in this press release are
expressly qualified in their entirety by such cautionary statements.
Unpredictable or unknown factors not discussed in this release also
could have material adverse effects on forward-looking statements.
SunCoke Energy, Inc.
Investors:
Lisa
Ciota: 630-824-1907
or
Media:
Steve
Carlson: 630-824-1783
Source: SunCoke Energy, Inc.
