BRISTOL, Tenn., March 7, 2017 /PRNewswire/ -- Contura Energy, Inc., a leading U.S. coal supplier, today announced its successful bid to significantly increase the company's ownership stake in Dominion Terminal Associates (DTA), a world-class coal export facility located in Newport News, Virginia. Upon closing, Contura will hold a sixty-five percent majority ownership in the facility through its affiliate, Contura Terminal, LLC.
"The coal blending capabilities and transportation flexibility provided by DTA serves as a strategic cornerstone of Contura's Trading & Logistics business," said Kevin Crutchfield, Contura's chief executive officer. "This investment supports our continued focus to deliver quality coal products with the reliable service our international customers expect from Contura Energy."
The highly-mechanized DTA facility provides twenty-two million tons per year of overall capacity and 1.7 million tons of total coal ground storage. Currently, Contura owns approximately a forty-one percent interest in the facility.
On January 12, 2017, Peabody Energy filed a motion with the U.S. Bankruptcy Court, Eastern District of Missouri, requesting approval of bidding procedures for the sale of its ownership stake in the DTA facility as part of its ongoing Chapter 11 restructuring. That order was approved by the Court on January 30, 2017, and an auction was held for the asset on March 6, 2017. Contura participated in the bidding process jointly with Arch Coal, a current partner at the DTA facility. The transaction is subject to U.S. Bankruptcy Court approval and closing. A hearing on the matter is currently scheduled for March 9, 2017.
ABOUT CONTURA ENERGY
Contura Energy is a private, Tennessee-based company with affiliate mining operations across multiple major coal basins in Pennsylvania, Virginia, West Virginia and Wyoming. With customers across the globe, high-quality reserves and significant port capacity, Contura Energy reliably supplies both metallurgical coal to produce steel and thermal coal to generate power. For more information, visit www.conturaenergy.com.
This news release includes forward-looking statements. These forward-looking statements are based on Contura's expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Contura's control. New uncertainties and risks arise from time to time, and it is impossible for Contura to predict these events or how they may affect the Company. Forward-looking statements in this news release or elsewhere speak only as of the date made. Contura has no duty to, and does not intend to, update or revise the forward-looking statements in this news release after the date it is issued. In light of these risks and uncertainties, investors should keep in mind that the results, events or developments disclosed in any forward-looking statement made in this news release may not occur.
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SOURCE Contura Energy, Inc.