According to media reports, including the Press Trust of India, and citing an unnamed source, the privately-held coking coal miner and ICVL have already signed a confidentiality agreement and detailed due diligence is underway.
The identities of the three mines were not disclosed, but Southern owner and business magnate Jim Justice operates mines in West Virginia, Virginia, Kentucky, Tennessee and Alabama.
Reports also indicated ICVL had hired an investment banker to determine the mines’ valuation and oversee due diligence.
Neither Southern nor ICVL released public comment on the report.
Southern Coal’s 33 operated mines produced a total of 7.2 million short tons of coal in 2011.
The impetus for Southern’s move to add in the consortium is not known.
Despite calling back some of its workers last month following the signing of new coal contracts, controller Justice has been at the centre of some financial and human resources controversy as of late.
Four furloughed Justice Energy miners filed a federal class action lawsuit in Virginia claiming the company handed out pink slips without proper notice as mandated by the US government.
In June, reports surfaced that several contractors across central Appalachia had filed suit against the coal baron alleging he reneged on payments for work dating back to 2011.
In response to the latter, Justice told the Associated Press he was not heavily involved in the operations of his coal companies and complaints about debts reached him "on a limited basis".
However, he said he could "absolutely promise" the debts would be paid.
"Everybody should be really confident they're going to get paid," he said at the time.
Justice also offered a dire outlook on the future of coal in June, even going as far to say it might be the end for the fuel.
"You're in a time when the world economies are really struggling, our economy is really struggling, utilities are converting to natural gas, and you may be witnessing the death of the coal industry," Justice said.
He added that settling debts was not as easy as writing a cheque when his mines were trying to remain open and producing coal and if he paid all his debts, he would be forced to “shut everything down”
