(Adds details, context)
MOSCOW, July 15 Russia's Severstal has
agreed to sell Pennsylvania-based metallurgical coal producer
PBS Coals to Canada's Corsa Coal for an enterprise value
of $140 million, the Russian company said on Tuesday.
Corsa Coal operates U.S.-based coal mines. Its Wilson Creek
metallurgical coal operations are also based in Pennsylvania,
while the Kopper Glo thermal coal operations are based in
"For Severstal with its current asset portfolio, PBS Coals
is a business which is not operationally linked to the company's
steel plants in Russia and the U.S.," the company said in a
Severstal will receive $60 million in cash, it said in a
statement. Corsa Coal has also agreed to assume reclamation and
water treatment liabilities from PBS Coals for $60 million.
The deal is expected to be completed by mid-August. Deutsche
Bank has been Severstal's financial adviser on the deal.
(Reporting by Svetlana Burmistrova; Writing by Polina Devitt,
editing by Elizabeth Piper)