The 42-mile segment between Oneida and Devonia was purchased by RJ Corman Railroad Property for about $US3 million from National Coal subsidiary NC Railroad. The transaction included all tracks, rails, ties, switches, crossings, bridges and trestles as well as all other fixtures, improvements and appurtenances.
National Coal had used the line to access the New River Tract property and preparation plant in Devonia. Those assets were sold in late April in an $11.8 million deal with Ranger Energy Investments.
National president Daniel Roling reiterated a statement he had made in a report of the company’s quite sour first-quarter financial results: despite the challenges the producer was facing, it was continuing to progress with cautious optimism.
“As the economy improves, both prices and volumes for our coal should increase progressively as we advance through the year,” he said.
Part of the company’s plan is to start construction of the new No. 12 mine, which is set to produce a high-quality specialty coal.
“This mine should help us achieve one of our key goals – lowering our costs,” Roling said. “Even though we are focused on our organic growth prospects, we remain mindful of the challenge to refinance our debt.”
With the New River Tract assets and rail line sold, National’s operations in Tennessee comprise about 57,000 acres of coal mineral and mining rights, along with one active underground operation and one active surface mine.
