Vectren selling its coal-mining subsidiary for $296M

July 2, 2014

One of Indiana's largest natural-gas utilities is selling its coal-mining subsidiary to a southern Indiana-based coal-mining company, putting more than 800 coal miners' jobs at risk.

Evansville-based Vectren Corp. officials announced Tuesday that they're selling Vectren Fuels to Terre Haute-based Sunrise Coal LLC for $296 million, with capital adjustments not to exceed $325 million. The sale is expected to be finalized later this year with Sunrise Coal, a subsidiary of Denver-based Hollador Energy Company.

Vectren Fuels owns three coal mines in southwestern Indiana that employ nearly 850 coal miners, The Evansville Courier & Press reported. Two of the mines are in Oaktown and the other is in Petersburg.

Those coal-mining jobs are not guaranteed after the sale is finalized, but Vectren notes that Sunrise Coal will start the hiring process soon and that all miners currently employed will be considered for hire.

Vectren has 681,000 natural gas customers in southern and central Indiana. It offers gas service in every county surrounding Marion County.

ADVERTISEMENT

Recent Articles by Associated Press

Comments powered by Disqus