Coal Age

JAN-FEB 2019

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10 www.coalage.com January/February 2019 leading developments continued According to court documents, for the Buckingham mine, the successful bid provides a purchase price of $1.8 million in cash, with an assumption of $800,000 of trade payables. For the Oxford assets, the successful bid's purchase price is a reduction of the Net Working Capital Target Amount from $3.75 million to $3.5 million. Westmoreland, based in Engle- wood, Colorado, and several affiliates filed for Chapter 11 bankruptcy reor- ganization on October 9. On Novem- ber 18, Judge David R. Jones approved bidding procedures for the sale of substantially all of Westmoreland's assets. Westmoreland, the sixth-larg- est coal-mining enterprise in North America, and its affiliates operate 19 coal mines in six states and Canada. The companies primarily produce and sell steam coal to power plants, industrial customers and barbecue charcoal manufacturers. According to court documents, Westmoreland last summer retained Centerview Partners LLC to conduct a "comprehensive" marketing process for Westmoreland's assets. Launched in August, that effort proved less than optimal as CCU's offer was the only proposal that the [Westmore- land debtors] received to acquire the Buckingham mine that offered the assumption of significant reclamation liabilities and a cash payment to the Westmoreland debtors, a filing said. As a result, it was accepted by West- moreland and submitted to the court for approval. A sale hearing originally set for January 16 was continued until January 28 in the Houston courtroom. Together, Buckingham and Oxford once produced in excess of 6 million tons of steam coal annually, though that total has fallen in recent years to about half. Buckingham operates the Burr Oak No. 6 underground mine in Perry County. It typically produces approximately 1 million tons per year. Oxford operates several mostly small surface mines that generally produce less than 500,000 tons annually each. Burr Oak produced a little more than 700,000 tons of coal over the first three quarters of 2018, Mine Safety and Health Administration figures show. It has about 125 employees. The compa- ny once operated a sister deep mine, Burr Oak 7, but it has closed. Court filings indicate that Oxford's assets include 15 different coal mines lo- cated near each other in Ohio and Ken- tucky. Only seven of the mines currently are active, and eight are in reclamation. Ungurean co-founded Oxford sev- eral decades ago and has served as a Westmoreland director, although not currently employed by the company, according to a Westmoreland official. Buckingham's primary coal sup- ply agreement with American Electric Power's 1,590-megawatt Conesville power plant in Coshocton County, Ohio, is set to expire December 31, and is not expected to be replaced or renewed. Westmoreland acknowl- edged in a filing, "the principal value of the Buckingham mine is driven by cash flows generated in 2019. It is for this reason [the Westmoreland debt- ors] believe the value of the Bucking- ham mine to potential buyers will sig- nificantly decline throughout 2019." Alliance Resource Partners announced that Joseph W. Craft III, president and CEO of ARLP's general partner, has assumed the additional role of chairman of the general partner's board of directors. Craft replaces John P. Neafsey, who retired after serving as board chairman since 1999. Robert J. Druten has been elected to the general partner's board of directors and will serve as chairman of its conflict committee and as a member of its Audit and Compensation committees. Druten served as a director of AHGP's former general partner from Janu- ary 2007 through December 2018. Arch Coal Inc. elected Paul T. Demzik as chief commercial officer. Prior to joining Arch, Demzik was head of thermal coal trading at Anglo American for five years and president of Peabody COALTRADE for seven years. Glencore promoted coal chief Peter Freyberg to head of mining. Gary Nagle was appointed as head of coal assets. Morien Resources Corp. promoted Dawson Bris- co to president and CEO. Brisco was appointed president in May 2018. John P. A. Budreski, who resigned as CEO, will continue with Morien as executive chairman. Union Pacific named Jim Vena COO. He served as executive vice president and COO at Canadian National until retiring in June 2016 after a 40-year career. Motion Industries Inc. promoted N. Joe Limbaugh to the position of senior vice president of supply chain, operations support and marketing. In 2013, Lim- baugh was asked to return to Motion's Birmingham, Alabama, headquarters as vice president of operations, distribution and properties. Eriez-USA promoted Dan Zimmerman to the position of operations director. Zimmerman has been with Eriez since 2004, serving most recently as director of business development. p e o p l e i n t h e n e w s Joseph W. Craft III Robert J. Druten Peter Freyberg Dawson Brisco Jim Vena N. Joe Limbaugh Dan Zimmerman Leading Developments Continued from Page 5

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