Alliance Resource Partners (ARP) has signed an agreement with White Oak Resources and related entities for the development of a longwall mining operation in Illinois, US.

ARP has made an initial investment of $69.5m in the mining operation, currently under construction.

The company estimates its total investment in the project to be $400 to $525m over the next three to four years.

The deal also comprises leaseback of reserves and surface rights, a coal handling and services agreement, and a financing facility for equipment.

ARP will fund the development from its current finance facility and cash from its existing operations.

Mine No. 1 will provide access to approximately 200Mt from the Herrin No. 6 coal seam, including 6.0 to 6.5Mt of coal annually, once it starts production in 2014.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData