In the early 2000s, we again acquired mining operations in West Virginia and Kentucky, owning them until 2005, at which time they were sold to a private equity group.
In 2008, an affiliate of ours, along with FirstEnergy Corporation, acquired mining assets and developed them into Signal Peak Energy. Realizing the continued decline of domestic coal sales markets, we entered the international markets.
In late 2011, Pinesdale LLC, a fully-owned subsidiary of the Gunvor Group, Ltd., one of the world’s leading commodity traders, purchased a one-third interest in the Signal Peak Energy venture for $400 million. This transaction put the enterprise value of the operations at $1.5 billion inclusive of debt.
Today, 99% of Signal Peak Energy’s production is sold in international markets through an affiliated company. Signal Peak has become one of the largest underground coal mines in the world, moving coal internationally to Asia and South America.