Blaze Energy has signed an agreement to acquire Kentucky Diversified Fuels (KDP), which has operations in eastern Kentucky, US.

KDP includes the steam coal strip mining company Middle Fork Development Services (MFDS) and a development stage coal-to-liquid company, MXP, as well as a coal feedstock impoundment situated on 24.68 acres of land, with around 2.4 million tonnes of in-place fine refuse reserves.

Blaze also executed an agreement with KDP and BMM-Empire to acquire an additional 43.63 acres, with 15.6 million tonnes of in-place reserves, in a separate transaction.

With annual production in excess of 165,000 tonnes and revenues of $8.6m in FY2013, and projected coal production of 325,000 tonnes and revenues of $16.3m for FY2014, MFDS operates an active coal mining operation in Magoffin county, Kentucky.

MXP intends to use its technology to transform energy trapped in otherwise wasted natural resources, such as the coal fine impoundments acquired by the firm, into transportation fuels and fuel additives.

To purchase its entire production output for distribution to the consumer marketplace, MXP has signed a long-term contract with Tenaska BioFuels.Providing an estimated 50-year feedstock for the MXP proposed plant, the coal refuse reserves known as the Dotson Fork and School House Brach Impoundments are the by-product of the previous coal mining operations of Chisholm Coal and have more than 4.4 million tonnes of recoverable coal reserves.

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
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The Impoundments were appraised in October 2012 by the engineering firm of Marshall Miller and Associates. They are collectively valued at around $33m, at current market conditions.

Energy