Total coal reserves are estimated to be at least 16 million tons, a figure pending a reserve study that is now underway. Assets include two active underground mines, one surface mine and one highwall operation, while current production is 250,000-300,000 tons per annum with future expansion potential.

Current production volumes have sales contracts through 2011.

Frederick “Fritz” Henderson, who will serve as SunCoke’s chairman and chief executive officer upon the company’s separation from Sonoco, noted that the acquisition significantly increased SunCoke’s coal reserves.

“Given its contiguous nature, we believe we can manage this acquisition effectively as part of our existing Jewell coal and coke operations in Vansant, Virginia, allowing us to create immediate value for the business,” he said.

SunCoke Energy produces high-quality metallurgical-grade coke for major steel manufacturers in the US and Brazil.

The company's facilities in the US states of Virginia, Indiana, Ohio and Illinois have the capacity to manufacture about 3.67Mt of metallurgical coke annually.

A Middletown, Ohio, plant is in planning and will produce 550,000t of coke and 46 megawatts of electricity when it goes into operation during the second half of this year.

SunCoke, which also owns an equity interest in and operates a 1.7Mtpa coke-making facility in Vitória, Brazil, previously announced plans to increase its met coal mine production by about 45% to approximately 1.75Mtpa.