US-based coal producer Walter Energy has announced that it has completed a previously announced transaction to sell the Blue Creek Terminal and associated properties, located in Mobile, Alabama, to the Alabama State Port Authority for $25 million.
According to Walter Energy's statement, with the sale transaction, in addition to realizing value from the sale of a non-core asset, the company secured a throughput agreement that takes care of its export capacity needs for the Alabama mines.
As part of the transaction, the parties agreed to a long-term extension of the existing coal handling agreement that addresses both the company's current and future export requirements. The company currently exports approximately seven million mt of metallurgical coal through the Port Authority's McDuffie Coal Terminal in Mobile.
