The initial transaction will consist of a 33% interest in the company’s Haverhill and Middletown coke making facilities in Ohio being transferred to Suncoke Energy Partners.
The limited partnership structure is believed to have major tax advantages for Suncoke.
"We believe this strategy will create significant value for shareholders directly through the proceeds received for the assets dropped down and indirectly through the increase in value of our SXCP ownership interest and higher total cash distributions paid to us, including incentive distribution rights," SunCoke Energy’s chairman and CEO Fritz Henderson said.
"In addition, our new flexibility enables us to consider additional restructuring options for our coal mining business.
“While our coal mining team has delivered significant improvement in productivity, safety and production costs, we believe shareholder value will increase if we exit this business.”
Suncoke has more than 110 million tons of proven and probable reserves in Virginia and West Virginia.
