TORONTO—Canadian mining firm Sherritt International Corp. said it has closed the divestiture of its entire coal business.
The company announced late last year it would rid itself of the unit through two sales worth $946-million.
Sherritt’s thermal coal mines in Alberta and Saskatchewan were sold to Colorado-based Westmoreland Coal Co., for $465-million, and its entire coal royalty portfolio and Saskatchewan development projects were sold to a group led by Altius Minerals Corp. for $481-million cash.
According to the company, $793-million of the total transaction value was paid in cash.
“A significant portion” of the cash proceeds will be used to balance the company’s books, it said.
“This transaction benefits Sherritt by rationalizing our asset base, significantly enhancing liquidity and providing the opportunity to strengthen our balance sheet,” Sherritt chief executive David Pathe said in a statement.
“We are continuing to execute on our strategy to build positive momentum and create sustainable shareholder value.”
Sherritt has long been one of Canada’s largest coal producers.