BECKLEY, W.Va. (AP) -- Russian mining and metals company Mechel OAO says it is acquiring coal producer Bluestone Industries for $436 million.
Mechel said Wednesday it also will pay about 83.3 million preferred shares and assume about $132 million of debt.
Beckley-based Bluestone Industries is the parent of Bluestone Coal. It primarily produces coking coal used by steelmakers to fire blast furnaces.
Mechel said the deal doesn't include Bluestone's steam coal operations in Kentucky and non-coal operations.
Mechel CEO Igor Zyuzin said the acquisition will establish the company as one of the world's largest coking coal producers.'
The deal is expected to close by May 7.