The California company closed its deal, worth $US264 million over the next five years, on February 28 and now officially has a foothold in the coal energy market.
Whitesburg extracts coal via surface and highwall mining methods, and its equipment fleet includes Caterpillar bulldozers with single-shank rippers and SU-blade and rippers, hydraulic excavators, loaders, trucks and other associated equipment.
Drilling and blasting at Whitesburg has begun in two areas, and Universal said it expects to see coal “on the ground” this week.
“Over the past few months, land reclamation work has progressed and passed inspection by the state of Kentucky, paving the way to extracting coal from the mine,” Whitesburg vice-president of business development Pete Monroe said.
“We … look forward to a very financially rewarding project as our operations maximize the full value of the mineral rights and leases under contract.”
Universal Bioenergy previously confirmed Whitesburg owns the mineral right leases and holds the state mining permits.
The gross revenues target equates to $52.8 million in sales annually on average, in addition to an estimated $71.74 million in sales for last year.
Potential earnings from the acquisition are estimated at $5-8 million annually, just for Universal.
The company first announced plans to obtain a major stake in Whitesburg’s assets and interests from JLP & Partners on September 26, 2011.
At that time, the company projected the acquisition would provide it with a significant return on investment.
Universal Bioenergy was founded in 2004. The company produces and markets natural gas, petroleum and propane in addition to coal. Whitesburg’s output will be marketed to electric utility customers.
