Natural Resource closes coal acquisitionsadmin
Coal properties owner and manager Natural Resource Partners LP has closed two acquisitions of coal reserves in Indiana and Maryland totaling $16.35 million.
The first acquisition for $10.85 million comprises coal reserves in Indiana. The acquisition consists of 16.3 million tons of coal reserves and an overriding royalty interest on an additional 2.4 million tons. These reserves are leased to Triad Mining, a subsidiary of James River Coal Co. (Nasdaq: JRCC). The reserves are located in Pike, Warrick and Gibson Counties in Indiana.
Production on both the owned and override property is anticipated to begin in mid-2007. Natural Resources Partners anticipates between $600,000 to $700,000 in revenue in 2007, increasing to between $2.8 million and $3 million in 2009, when all properties are expected to be in full operation.
The company has also closed a $5.5 million acquisition of 3.3 million tons of coal reserves in Allegany County, Md. The property currently produces more than 500,000 tons per year and should generate royalty income to of nearly $1.4 million per year for the company.
Natural Resource Partners (NYSE: NRP – News, NSP) is headquartered in Houston and maintains its operations headquarters in Huntington, W.Va.
Published June 30, 2006 by the Houston Business Journal