BRISTOL, Tenn., July 18, 2019 /PRNewswire/ -- Contura
Energy, Inc. (NYSE: CTRA), a leading U.S. coal supplier, today
provided updates on both the company's ongoing search process for a
new, permanent chief executive officer, and the status of the
obligations of its subsidiary, Contura Coal West, LLC (Contura Coal
West), as permit holder for the two Powder River Basin surface
mines that were divested in December of 2017.
As previously announced, Contura's prior chief executive officer
departed the company in early May to pursue an opportunity outside
of the coal industry. Subsequently, the company's board of
directors appointed Andy Eidson,
Contura's executive vice president and chief financial officer, and
Mark Manno, Contura's executive vice
president, chief administrative and legal officer and secretary, as
interim co-chief executive officers, effective May 7, 2019, as the board works to identify
Contura's next permanent CEO.
"Andy and Mark have shown exemplary leadership during this time
of transition, allowing our board the time it needs to conduct the
comprehensive search our shareholders and employees deserve. We
have made great strides in that process and have been very pleased
with the high caliber of experienced leaders under consideration,"
said board chairman, Neale
Trangucci. "While we will continue to prioritize thorough
due diligence in securing the best candidate to lead Contura into
the future, we are in the final stages of this search and expect to
announce our selection in the near future."
Contura also commented today on the still evolving situation in
the Powder River Basin (PRB) as a result of the recent bankruptcy
filing by Blackjewel, L.L.C. (Blackjewel).
As previously announced, in December
2017, Contura's wholly-owned subsidiary, Contura Coal West,
completed a transaction with Blackjewel to sell the Eagle Butte and
Belle Ayr mines located in Wyoming, along with related coal reserves,
equipment, infrastructure and other real properties. Since that
time, Blackjewel has served as the sole and independent operator of
the mines while it, Contura Coal West, and the State of Wyoming jointly undertook the lengthy
process of transferring all leases and permits to Blackjewel.
As of mid-year 2018, all related leases and permits had been
successfully transferred with the exception of the Surface Mining
Control and Reclamation Act (SMCRA) permits for each of the Eagle
Butte and Belle Ayr mines, respectively.
On July 1, 2019, Blackjewel
announced that it and certain affiliated entities had filed
voluntary petitions for reorganization under Chapter 11 of the
Bankruptcy Code in the U.S. Bankruptcy Court for the Southern
District of West Virginia.
Subsequently, on July 10, 2019, the
Wyoming Environmental Quality Council (EQC) stayed the transfer
process of the still outstanding permits from Contura Coal West to
Blackjewel to allow the EQC time to review these developments.
Also as previously disclosed, as the mining permit holder,
Contura Coal West has maintained, and continues to maintain,
sufficient bonding with third-party sureties to cover the up to
$254 million in reclamation and other
obligations as estimated and approved by the Wyoming Department of
Environmental Quality for the two mines.
"As Blackjewel's bankruptcy process unfolds, we continue to
believe that the best scenario for all stakeholders would be for
Blackjewel, or an alternate third-party operator, to secure
appropriate financing to run these mines and maintain the
employment of the operating team for the foreseeable future," said
Andy Eidson, interim co-chief
executive officer. "As such, we will continue to work proactively
with Blackjewel's new leadership, the State of Wyoming, and other involved parties
to help move this process toward a positive outcome."
"Irrespective of arriving at a preferred solution that allows
for the continued operation of the Belle Ayr and Eagle Butte mines,
Contura fully intends to honor our obligations as permit holder for
these mines," added Mark Manno,
interim co-chief executive officer.
ABOUT CONTURA ENERGY
Contura Energy (NYSE: CTRA) is a Tennessee-based coal supplier with affiliate
mining operations across major coal basins in Pennsylvania, Virginia and West
Virginia. With customers across the globe, high-quality
reserves and significant port capacity, Contura Energy reliably
supplies both metallurgical coal to produce steel and thermal coal
to generate power. For more information, visit
www.conturaenergy.com.
FORWARD-LOOKING STATEMENTS
This news release includes forward-looking
statements. These forward-looking statements are based on
Contura's expectations and beliefs concerning future events and
involve risks and uncertainties that may cause actual results to
differ materially from current expectations. These factors are
difficult to predict accurately and may be beyond Contura's
control. Forward-looking statements in this news release or
elsewhere speak only as of the date made. New uncertainties
and risks arise from time to time, and it is impossible for Contura
to predict these events or how they may affect Contura. Except
as required by law, Contura has no duty to, and does not intend to,
update or revise the forward-looking statements in this news
release or elsewhere after the date this release is issued. In
light of these risks and uncertainties, investors should keep in
mind that results, events or developments discussed in any
forward-looking statement made in this news release may not
occur.
INVESTOR
CONTACT
investorrelations@conturaenergy.com
Alex Rotonen, CFA
423.573.0396
MEDIA
CONTACTS
corporatecommunications@conturaenergy.com
Rick Axthelm
423.573.0304
Emily O'Quinn
423.573.0369
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SOURCE Contura Energy, Inc.