CanAm Coal and its subsidiary Radar USA Hold have completed acquisition of a 50% stake in Birmingham Coal & Coke (BCC) and Cahaba Contracting & Reclamation.
The firms have an option to acquire an additional 30% of BCC within two years from the closing of the transaction and the remaining 20% of BCC within five years from the closing of the transaction.
With this acquisition, CanAm can access three operational coal mines that produce high quality thermal coal, a coal brokerage business and a stable cash flow.
Additionally, Alabama coal fields will provide opportunity to increase CanAm’s coal operations in the Appalachian coal basin.
With the added assets, CanAm expects to produce about 50,000 to 100,000 tonnes of coal per month, with estimated exit coal sales between 40,000 and 50,000 tonnes per month for 2011.