TORONTO (Yosefardi) – Sherritt International Corporation, which explores nickel resources in Sulawesi Island, has divested its coal business for $946 million.
A group led by Altius Minerals Corp acquires Sherritt’s entire royalty portfolio and interest in coal development assets for cash consideration of $481 million.
Westmoreland Coal Company, meanwhile, will acquire Sherritt’s operating coal assets for $465 million, comprised of $312 million in cash and the assumption of capital leases currently valued $153 million.
“The parties are seeking to close the coal transaction in the first quarter 2014,” Sherritt said today. The coal assets are currently described as the Prairie and Mountain Operations.