Kinder Morgan Resources will own coal and other mineral reserve properties and infrastructure in North America, but will not actively engage in mining.

Kinder Morgan says the new business will lease properties to interested operators in exchange for royalty payments, ensuring that the lessees of the properties will manage any commodity price risk associated with the operations.

The new business will operate under Kinder Morgan Terminals, which boasts more than 180 terminals storing petroleum products and chemicals, as well as handling coal, petroleum coke and steel products.

Coal industry veteran Richard M Whiting has been appointed as president of Kinder Morgan Resources.

His previous experience includes time as president and chief executive of Patriot Coal and chief marketing officer of Peabody Energy.

“Rick Whiting has extensive commercial and operating experience, and is highly regarded in the coal industry. We are delighted he has joined KMP to oversee our new endeavour,” KMP Terminals president John Schlosser said.

Schlosser said the company had over $450 million of coal terminals expansion projects underway and continued to pursue additional opportunities.

“This new business platform will enable us to increase the services we offer to our valued coal industry customers, as well as other extractive industry participants,” he added.

Kinder Morgan did not specify if any land sales discussions were underway, where it was looking to acquire land or how much it expected to spend, but a company spokesman confirmed that coal would be its initial focus.