Contura Energy has significantly increased its ownership stake in Dominion Terminal Associates (DTA), a world-class coal export facility located in Newport News, Virginia. Upon closing, Contura will hold a 65% majority ownership in the facility through its affiliate, Contura Terminal LLC.
“The coal blending capabilities and transportation flexibility provided by DTA serves as a strategic cornerstone of Contura's Trading & Logistics business,” said Kevin Crutchfield, CEO, Contura Energy. “This investment supports our continued focus to deliver quality coal products with the reliable service our international customers expect from Contura Energy.”
The highly mechanized DTA facility provides 22 million tons per year (tpy) of overall capacity and 1.7 million tons of total coal ground storage. Currently, Contura owns approximately a 41% interest in the facility.
On January 12, Peabody Energy filed a motion with the U.S. Bankruptcy Court in the Eastern District of Missouri requesting approval of bidding procedures for the sale of its ownership stake in the DTA facility as part of its ongoing Chapter 11 restructuring. That order was approved by the court on January 30, and an auction was held for the asset on March 6. Contura participated in the bidding process jointly with Arch Coal, a current partner at the DTA facility. The transaction is subject to U.S. Bankruptcy Court approval and closing. A hearing on the matter is currently scheduled for March 9.