ICG entered into an agreement to acquire the 57% of Anker and 49% of CoalQuest it does not already own. ICG will pay $US173 million in stock for West Virginian coal operator Anker and $US102 million in stock for West Virginian explorer CoalQuest. ICG will also assume $25 million in debt from Anker.
Together, the two purchased companies planned 2005 shipments of 6.5 million tons of coal from mines located principally in West Virginia and Maryland, and together hold an estimated 38Mt of proven and probable coal reserves.
A number of new projects are also on the cards for the two entities. Anker plans to open Sycamore Mine No. 2 near Clarksburg, West Virginia during the first half of 2005. The mine is expected to achieve annual production of 1.2Mt by 2006.
Another property, the Hillman reserve containing about 200Mt in reserves, is to begin operation within three years and produce 9Mt by 2010.
"We believe these transactions will provide ICG with accretive earning power and reserves and will provide the shareholders of Anker and CoalQuest with a meaningful stake in a well-capitalised company that is essentially free of legacy liabilities," ICG chairman Wilbur Ross said.
ICG said it expected both transactions to be completed in the second quarter of 2005.
