TULSA, Okla.--(BUSINESS WIRE)--Feb. 24, 2012--
Alliance Resource Partners, L.P. (NASDAQ: ARLP) today announced that
Alliance Coal, LLC (“Alliance Coal”), its wholly-owned subsidiary, has
entered into a definitive agreement with Green River Collieries, LLC
(“Green River”) to acquire substantially all of its coal-related assets
located in Webster and Hopkins Counties, Kentucky. The transaction
includes the Onton No. 9 mining complex and an estimated 40.0 million
tons of coal reserves in the West Kentucky No. 9 coal seam.
ARLP currently anticipates consummation of the proposed transaction
following the completion by Green River of certain closing requirements.
“Strategically the acquisition of Green River further expands our
presence and enhances ARLP’s existing operating platform in the growing
Illinois Basin coal market,” said Joseph W. Craft III, President and
Chief Executive Officer. “The Onton No. 9 mine is an attractive addition
to our current operations in western Kentucky and provides ARLP with
increased flexibility to service our existing customer base. We look
forward to welcoming Green River’s employees and management to the
The Onton No. 9 mine is an underground mining complex which uses three
continuous mining units employing room-and-pillar mining techniques. The
mine currently produces annually an estimated 2.1 million tons of coal
and employs approximately 315 workers. Green River is in the process of
completing an air shaft which would allow the addition of a fourth
continuous mining unit should market conditions warrant increased
production from the mine. Essentially all of the planned 2012 production
from the mine is committed and priced under Green River contracts with
existing ARLP customers.
This announcement is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b), with 100% of the partnership’s
distributions to foreign investors attributable to income that is
effectively connected with a United States trade or business.
Accordingly, ARLP’s distributions to foreign investors are subject to
federal income tax withholding at the highest applicable tax rate.
About Alliance Resource Partners, L.P.
ARLP is a diversified producer and marketer of coal to major United
States utilities and industrial users. ARLP, the nation's first publicly
traded master limited partnership involved in the production and
marketing of coal, is currently the third largest coal producer in the
eastern United States with mining operations in the Illinois Basin,
Northern Appalachian and Central Appalachian coal producing regions.
ARLP operates ten mining complexes in Illinois, Indiana, Kentucky,
Maryland and West Virginia, including a new mining complex in West
Virginia. ARLP is also constructing a new mine in southern Indiana and
is purchasing and funding development of reserves, constructing surface
facilities and making equity investments in a new mining complex in
southern Illinois. In addition, ARLP operates a coal loading terminal on
the Ohio River at Mount Vernon, Indiana.
News, unit prices and additional information about ARLP, including
filings with the Securities and Exchange Commission, are available at http://www.arlp.com.
For more information, contact the investor relations department of ARLP
at (918) 295-7674 or via e-mail at firstname.lastname@example.org.
The statements and projections used throughout this release are based on
current expectations. These statements and projections are
forward-looking, and actual results may differ materially. These
projections do not include the potential impact of any mergers,
acquisitions or other business combinations that may occur after the
date of this release. At the end of this release, we have included more
information regarding business risks that could affect our results.
FORWARD-LOOKING STATEMENTS: With the exception of historical
matters, any matters discussed in this press release are forward-looking
statements that involve risks and uncertainties that could cause actual
results to differ materially from projected results. These risks,
uncertainties and contingencies include, but are not limited to, the
following: changes in competition in coal markets and our ability to
respond to such changes; changes in coal prices, which could affect our
operating results and cash flows; risks associated with the expansion of
our operations and properties; the impact of recent health care
legislation; deregulation of the electric utility industry or the
effects of any adverse change in the coal industry, electric utility
industry, or general economic conditions; dependence on significant
customer contracts, including renewing customer contracts upon
expiration of existing contracts; changing global economic conditions or
in industries in which our customers operate; liquidity constraints,
including those resulting from any future unavailability of financing;
customer bankruptcies, cancellations or breaches to existing contracts,
or other failures to perform; customer delays, failure to take coal
under contracts or defaults in making payments; adjustments made in
price, volume or terms to existing coal supply agreements; fluctuations
in coal demand, prices and availability due to labor and transportation
costs and disruptions, equipment availability, governmental regulations,
including those related to carbon dioxide emissions, and other factors;
legislation, regulatory and court decisions and interpretations thereof,
including issues related to climate change and miner health and safety;
our productivity levels and margins earned on our coal sales; unexpected
changes in raw material costs; unexpected changes in the availability of
skilled labor; our ability to maintain satisfactory relations with our
employees; any unanticipated increases in labor costs, adverse changes
in work rules, or unexpected cash payments or projections associated
with post-mine reclamation and workers′ compensation claims; any
unanticipated increases in transportation costs and risk of
transportation delays or interruptions; greater than expected
environmental regulation, costs and liabilities; a variety of
operational, geologic, permitting, labor and weather-related factors;
risks associated with major mine-related accidents, such as mine fires,
or interruptions; results of litigation, including claims not yet
asserted; difficulty maintaining our surety bonds for mine reclamation
as well as workers′ compensation and black lung benefits; difficulty in
making accurate assumptions and projections regarding pension, black
lung benefits and other post-retirement benefit liabilities; coal
market's share of electricity generation, including as a result of
environmental concerns related to coal mining and combustion and the
cost and perceived benefits of alternative sources of energy, such as
natural gas, nuclear energy and renewable fuels; uncertainties in
estimating and replacing our coal reserves; a loss or reduction of
benefits from certain tax credits; and, difficulty obtaining commercial
property insurance, and risks associated with our participation
(excluding any applicable deductible) in the commercial insurance
Additional information concerning these and other factors can be
found in ARLP’s public periodic filings with the Securities and Exchange
Commission ("SEC"), including ARLP’s Annual Report on Form 10-K for the
year ended December 31, 2010, filed on February 28, 2011 with the SEC.
Except as required by applicable securities laws, ARLP does not
intend to update its forward-looking statements.
Source: Alliance Resource Partners, L.P.
Alliance Resource Partners, L.P.
Brian L. Cantrell, 918-295-7673