Whitesburg KY

Feds probing Blackjewel

the investigation to continue.

A federal judge has approved the sale of the Wyoming facilities to Eagle Specialty Materials without Blackjewel’s debt obligations.

Coal company Contura Energy, the current permit holder for the Wyoming mines, agreed to pay $90 million as startup capital to take over the mines and assume cleanup obligations. In turn, Eagle Specialty Materials will pay Blackjewel $16.2 million.

The ongoing investigation will not affect the purchase of the mines, but the federal government will likely not be able to recover the money owed to it, said Joshua Macey, a Cornell University law professor.

“I don’t really see repayment happening, but (the federal government) is leaving its options open,” Macey said. “If Blackjewel goes away, the government will not be able to recover money from Blackjewel and will have to try to get paid from (purchasers or creditors). This is very hard to do.”

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