The deal for the southwestern Indiana reserves associated with Triad’s Freelandville complex in Sullivan and Knox counties also includes associated advanced royalties and a coal sales agreement that extends through 2017. The reserves are both leased and owned.
Triad Mining is a subsidiary of Kentucky-headquartered Blackhawk Mining.
Hallador officials said all newly purchased reserves are contiguous to its existing Oaktown 1 mine reserve; it will mine the tonnage from the Oaktown 1 mine portal.
President and CEO Brent Bilsland said the Freelandville reserves deal gives Sunrise access to tons they already controlled, but did not previously include within their reserve base.
“This transaction increases our reserve base at our lowest cost mine and creates a solid foundation of sales going forward,” he said. “We feel this investment ensures the low cost position of the Oaktown mine and solidifies the employment of our dedicated miners.”
