As with the first facility announced in August, Sedgman will operate the facilities under contract with the mining company, and NRP will receive a throughput fee for each ton of coal handled by the facilities based upon a percentage of the gross selling price with a designated minimum per ton. In addition to the minimum per ton, NRP will receive monthly recoupable minimums on the plants.

 

The coal being processed through this facility will be mined by Justice Energy, a subsidiary of James C. Justice Companies.

 

The Red Fox preparation plant and coal handling facility is located near Bishop, West Virginia. To be completed by mid-October, the plant will handle an estimated 20 million tons of coal reserves during its life.

 

While the coal preparation plant is still under construction, coal is currently being handled through the coal handling and rail loadout facility, making the transaction immediately accretive. NRP anticipates annual revenues of approximately $1.5 million from the facility.

 

The initial $3 million payment made by NRP at closing was funded through the partnership's credit facility. The remaining payments on the facility are scheduled to be paid between now and the completion of construction.

 

Justice has also informed NRP that Dynamic Energy, a Justice- affiliated company, will mine the coal reserves processed by the Coal Mountain plant acquired last week by NRP – not Bluestone Coal, as was previously announced.