Universal Bioenergy has completed the acquisition of a 40% stake in the Whitesburg Friday Branch Mine, a producer and provider of thermal steam coal in eastern Kentucky, the US.
The deal is projected to generate more than $264m over the next five years and will now allow the company to expand into the coal energy market sector.
Universal Bioenergy president Vince Guest said: "This acquisition marks a major milestone for us, as it gives us a diverse energy product portfolio including natural gas, propane, oil and coal.
"We believe this acquisition will help position us to up-list to NASDAQ, and take advantage of our other acquisition targets in the energy industry. The potential earnings to be generated from this acquisition is estimated at $5 to $8 million annually for Universal alone."
Whitesburg operates, mines and markets thermal coal in eastern Kentucky for use in coal-fired power plants.
Image : Universal and Whitesburg will mine, produce and market thermal/steam coal for sale in Kentucky, US. Photo: Courtesy of Universal Bioenergy.