LEXINGTON, Ky. (WJHL) – A report filed by coal operator Rhino Resource Partners reveals which mines the company agreed to purchase from bankrupt Blackjewel during an auction earlier this month.
According to the filing, Rhino Energy, an affiliate of Lexington, Kentucky based Rhino Resource Partners, entered into an agreement with Blackjewel and its affiliates to purchase three underground mines that were actively producing coal when Blackjewel filed for bankruptcy along with a preparation plant and a rail loadout facility.
The following assets in Virginia were included in the purchase agreement:
|MineAbbr||MineLocation||Job / Job Name||Permit #|
|D15||Pioneer #1||D-15 – Pioneer #1||Permit #1201797|
|D16||Mavrick||D-16 Mavrick – DOMINION #30||Permit #1202258|
|D16||Mavrick||D-16 Mavrick – DOMINION #30 Shadow Permit||Permit #Y-4015-97|
|D17||Tiller #4||D-17 Tiller #4 – SURFACE MINE #1||Permit #1702261|
|D18||Tiller #5||D-18 Tiller #5 – DOMINION MINE #7||Permit #1202259|
|D18||Tiller #5||D-18 Tiller #5 – DOMINION MINE #7 Shadow Permit||Permit #Y-3032-12|
|D18||Dominion #7||D-18 – Dominion 7 Shadow Permit||Permit #Pending Transfer|
|D20||Beehive||D-20 Beehive – DOMINION MINE #34||Permit #1202286|
|P12||Flatrock||P-12 Flatrock – FLATROCK PLANT & REFUSE||Permit #1702276|
|R251||FLATROCK #251||R251 – FLATROCK NORTHEAST||Permit #1102084|
|T12||Raven Loadout||T-12 Raven Loadout – RAVEN DOCK||Permit #1302005|
It is unclear when or if the mines and facilities will reopen.
It is also unclear if Rhino will commit to paying wages that Blackjewel owes to employees.
Rhino agreed to pay $850,000 in cash plus an additional royalty of $250,000 for the Virginia assets.
Several other companies also submitted bids during the auction:
- Contura Energy bid for Blackjewel’s two Wyoming mines and the Pax Surface Mine in West Virginia
- Kopper Glo Mining bid for the Lone Mountain and Black Mountain assets
- Coking Coal, LLC bid for the Pardee mine in Wise County
- Tye Fork Coal Company bid for the LM6 mine
- Mark Energy bid for the LM8 mine of Cumberland River Coal
According to Rhino’s filing, the company’s bid is subject to approval by the United States Bankruptcy Court for the Southern District of West Virginia, which is administering Blackjewel’s cases.
Blackjewel Bankruptcy Coverage:
- Week four of Blackjewel protest begins
- Kentucky AG reviewing coal company compliance with wage bond rule to prevent another Blackjewel
- Knoxville-based company to purchase Blackjewel mines, commit to paying back portion of owed wage
- Hundreds of Blackjewel miners gather at railroad tracks for answers from bankruptcy court
- Kentucky Labor Cabinet fines Blackjewel $366,500 for failing to post wage bond