Penn Virginia Resource Partners (PVR) has acquired approximately 29 million tons of coal reserves in eastern Kentucky and western Virginia from a private seller for $24.5 million in cash. The coal properties are located on approximately 34,000 acres in Harlan County, Ky., and Lee County, Va., and will be mined by Powdul Acquisition LLC, a subsidiary of International Coal Group Inc. Deep mine production from the first mine is expected to commence later this year. Production from the properties is expected to be sold in the steam/compliance utility and metallurgical/steel markets. The acquisition also includes an estimated 56 million board feet of hardwood timber.
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