The agreement between the CIT unit, which primarily provides finance solutions to companies in the energy sector, and Murray Energy’s Ohio Valley Coal Company will permit the operation to purchase new production-increasing longwall equipment, to be put into service at Powhatan No. 6. Shields are due to be delivered in July of next year.
CIT Energy & Infrastructure senior vice president Charlie Lee said the company was proud of the role it could play in Murray Energy’s acquisition. “CIT remains committed to Murray Energy and is dedicated to the progress of the entire coal industry,” he said in a statement.
Murray Energy chairman Robert Murray was also very happy with the outcome. “We are extremely pleased with the leasing agreement that CIT has provided us,” he said in a statement released by CIT. “This transaction was particularly attractive, as it allowed us to utilise progress payment financing to fund our equipment vendor during the construction process.”
The second largest US longwall coal producer, Murray Energy has operations in six states and has an annual production of about 24 million tons, as well as more than 10Mt under development.
