West Virginia based ERP Compliant Fuels is reportedly on the verge of buying three metallurgical coal mines in British Columbia, according to local media reports.
According to the Times Colonist, a Vancouver-based newspaper, ERP is negotiating to buy the idled Wolverine, Brule and Willow Creek mines with a sale expected to close shortly.
ERP Compliant Fuels would look to reopen the Brule mine, which produces PCI coal, immediately, following by the Wolverine mine in spring of 2017. Reopening of Willow Creek would not be part of the company’s first-year plans due to its high costs of the production.
Metallurgical coal prices are up over 70% so far this year, following market lows in 1Q16.
Meanwhile, Asian steelmakers are reportedly looking to diversify supply after numerous mine closures in the US has left Australia as the dominant supplier to the region.
The three British Columbia mines were previously owned by bankrupt US coal company, Walter Energy, which put them up for sale earlier this year as part of its bankruptcy proceedings.
Edited by Jonathan Rowland.