MBU Capital says it has completed the aquisition of the Ben’s Creek Carbon mine, in West Virginia, USA, and has plans to extract the estimated 22 Mt of metallurgical coal reserves through highwall mining.
Set over approximately 4,047 ha in Wharncliffe, West Virginia, the mine is serviced by an 8-km dedicated railway loadout, which gives the mine direct access to the Norfolk Southern Railway network. The mine has a long history of supplying Hi-Vol B+ metallurgical coal to US and international customers, MBU Capital says. In addition, Eagle and Lower War Eagle seams produce a Hi-Vol A+ seam with a reflectance of 0.8-0.9.
“Government expenditure in large-scale national infrastructure projects, combined with growth in the construction and the automotive sectors, has spurred the high strength steel market, which is expected to grow by a compound annual growth rate of 7.4% between 2020-2027 globally,” MBU Capital said. “This, in turn, has created opportunities for asset-backed investments in metallurgical coal mining and steel production, a core pillar of MBU Capital’s investment strategy.”
Adam Wilson, Head of Natural Resources at MBU Capital, said: “We forecast strong demand for high strength steel over the coming decade, and this acquisition will significantly add to MBU Capital’s portfolio of precious metals and compound materials.”
Once Ben’s Creek Carbon becomes fully operational in July 2021, MBU Capital anticipates the acquisition will directly create and sustain jobs and will also contribute to the economic development of the region in other meaningful ways.