Severstal to Sell Pennsylvania Coal Unit for $60 Million
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OAO Severstal, Russia’s second-largest steelmaker, agreed to sell U.S. coal producer PBS Coals to a Canadian mining company for $140 million six years after it paid about $1 billion for the unit.
Corsa Coal Corp., based in Toronto, will pay $60 million in cash, assume $60 million of reclamation and water-treatment liabilities and give the Russian owner the balance of $20 million in collateral for other liabilities, Severstal said in a statement today. Severstal, controlled by billionaire Alexey Mordashov, bought PBS in 2008 to provide a guaranteed supply of coal for its U.S. operations.