SunCoke Energy, currently an ancillary of transportation fuel provider Sunoco, has purchased Virginia-based Harold Keene Coal for about $40m.

Coal reserve estimates for the assets of the entities purchased are estimated at around 16 million tonnes.

The transaction includes two active underground mines and an active surface and high wall mine currently producing 250,000 – 300,000 tonnes of coal annually.

SunCoke Energy produces high-quality metallurgical-grade coke for major steel manufacturers in the US and Brazil.

Sunoco has operations mainly in the East Coast and Midwest regions of the US.