HOUSTON, Sept 05, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Natural Resource Partners L.P.
(NYSE: NRP, NSP) today announced that it has acquired another coal preparation
plant and coal handling facility under its memorandum of understanding with
Sedgman USA, LLC for approximately $7.7 million, of which $3.0 million was
paid at closing.
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As with the first facility announced in August, Sedgman will operate the
facilities under contract with the mining company, and NRP will receive a
throughput fee for each ton of coal handled by the facilities based upon a
percentage of the gross selling price with a designated minimum per ton. In
addition to the minimum per ton, NRP will receive monthly recoupable minimums
on the plants. The coal being processed through this facility will be mined by
Justice Energy, Inc., a subsidiary of James C. Justice Companies, Inc.
The Red Fox preparation plant and coal handling facility is located near
Bishop, West Virginia. NRP anticipates that the plant, scheduled to be
completed by mid-October, will handle an estimated 20 million tons of coal
reserves during its life. While the coal preparation plant is still under
construction, coal is currently being handled through the coal handling and
rail load-out facility, making the transaction immediately accretive. NRP
anticipates annual revenues of approximately $1.5 million from the facility.
The initial $3.0 million payment paid at closing was funded through the
partnership's credit facility. The remaining payments on the facility are
scheduled to be paid between now and the completion of construction.
Justice has also informed NRP that Dynamic Energy, Inc., a Justice-
affiliated company, will mine the coal reserves processed by the Coal Mountain
plant acquired last week by NRP, not Bluestone Coal, as was previously
announced.
Natural Resource Partners L.P. is headquartered in Houston, TX, with its
operations headquarters in Huntington, WV. NRP is a master limited
partnership that is principally engaged in the business of owning and managing
coal properties in the three major coal producing regions of the United
States: Appalachia, the Illinois Basin and the Powder River Basin. The common
units are traded on the New York Stock Exchange (NYSE) under the symbol NRP
and the subordinated units are traded on the NYSE under the symbol NSP.
For additional information, please contact Kathy Hager at 713-751-7555 or
khager@nrplp.com. Further information about NRP is available on the
partnership's website at http://www.nrplp.com.
This press release may include "forward-looking statements" as defined by
the Securities and Exchange Commission. Such statements include the estimated
revenues, the completion date of the coal handling facilities, the coal
reserves associated with the facilities, as well as the accretive nature of
the transaction. All statements, other than statements of historical facts,
included in this press release that address activities, events or developments
that the partnership expects, believes or anticipates will or may occur in the
future are forward-looking statements. These statements are based on certain
assumptions made by the partnership based on its experience and perception of
historical trends, current conditions, expected future developments and other
factors it believes are appropriate in the circumstances. Such statements are
subject to a number of assumptions, risks and uncertainties, many of which are
beyond the control of the partnership. These risks include, but are not
limited to, decreases in demand for coal; changes in operating conditions and
costs; production cuts by our lessees; commodity prices; unanticipated
geologic problems; changes in the legislative or regulatory environment and
other factors detailed in Natural Resource Partners' Securities and Exchange
Commission filings. Natural Resource Partners L.P. has no obligation to
publicly update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise.
SOURCE Natural Resource Partners L.P.
Kathy Hager of Natural Resource Partners L.P.
+1-713-751-7555
or
khager@nrplp.com
http://www.prnewswire.com