US-based Globe Specialty Metals has entered into an agreement to buy specialty coal producer Alden Resources and a related company.

The company plans to finance the transaction and related working capital and capital expenditure needs with $40m to $50m of bank financing and $30m to $40m of cash from its balance sheet.

In addition, the seller could get a contingent payment of up to $6.8m based on future performance.

Alden is a miner, processor and supplier of specialty coal to the silicon and silicon-based alloy industries and thermal coal to the power industry.

The company owns about 32 million gross recoverable tons of coal located in various properties in the US states of Kentucky and Tennessee that are permitted and suitable for mining.

It also owns and operates a coal preparation plant in eastern Kentucky that washes and prepares the coal.