KNOXVILLE, Tenn. — A wholly-owned subsidiary of National Coal Corp. sold 42 miles of rail line between Oneida and Devonia, Tenn., to R.J. Corman Railroad for approximately $3 million.
The former NC Railroad line previously provided National Coal, a Central and Southern Appalachian coal producer, with access to reserves on the New River Tract as well as a preparation plant in Devonia, Tenn., which was recently sold in a separate transaction. This rail line sale includes any and all tracks, rails, ties, switches, crossings, bridges and trestles as well as all other trackage, appurtenances, improvements and fixtures, the railroad said.
Daniel A. Roling, President and CEO at National Coal, said that despite challenges, the company is moving forward with cautious optimism.
“As the economy improves, both prices and volumes for our coal should increase progressively as we advance through the year,” Roling said. “At present we are moving forward with our plans to begin construction of our new mine number 12, which will produce a high quality specialty coal. This mine should help us achieve one of our key goals – lowering our costs. Even though we are focused on our organic growth prospects, we remain mindful of the challenge to refinance our debt.”
National Coal’s continuing operations in Tennessee include the coal mineral and mining rights to approximately 57,000 acres of land, along with mining complexes that include one active underground mine and one active surface mine. In addition, National Coal continues to own and operate one preparation plant and one unit train loading facility served by the Norfolk Southern Railroad.