US-Australian coking coal producer Coronado has agreed to sell its Logan mining complex in West Virginia to Kentucky-based Phoenix Coal after a year of declining production, the firm said today.
The sale will optimise Coronado's asset portfolio and will not affect its near-term production guidance, it said. The firm plans to produce 16mn-17mn t of primarily coking coal across its US and Australian mines in 2026.
The company will sell 100pc of its interest in Coronado Coal II, the entity that holds the Logan mining complex, to Phoenix Coal. The sale includes coal mining properties, leases, mining permits and related infrastructure, including a preparation plant and loadout facility. Coronado expects to complete the sale in July 2026 and has not yet released financial details regarding the transaction.
The Logan divestment is expected to cut ongoing maintenance and holding costs associated with the complex, remove future reclamation obligations and enable Coronado to focus capital on its core coking coal operations, the company said.
Weakening demand in the global steel market has prompted many central Appalachian producers to scale back or halt coking coal output. US coking coal exports to China dropped by 90pc in 2025 to 825,000t largely because of China's tariffs on US coal.
Coronado decided to idle operations at multiple Logan coking coal mines in February, citing adverse market conditions. It also cut production at the complex to 1.8mn t in 2025, from 2.1mn t in 2024, and planned to reduce output by a further 1.5mn t over 2026, according to its full-year 2025 results released in February.
The firm aims to raise production at its Curragh coal complex in Australia and Buchanan mine in the US over the next decade. The firm plans to ramp up a 2mn t/yr underground expansion at Curragh and a 1mn t/yr expansion at Buchanan in the early 2030s, it said in its full-year report.
