You have asked a good but very complex question. Try bearing down on this report:
U.S. BUSINESS NEWS
Mine Where Rescue Took Place
Has Links to a Citigroup Arm
By TIMOTHY AEPPEL and PAUL BECKETT
Staff Reporters of THE WALL STREET JOURNAL
QUECREEK, Pa. -- The coal mine where nine workers were saved last month, although portrayed during the rescue efforts as a tiny operation, is closely linked to a web of companies controlled by the venture-capital arm of Citigroup Inc.
Citigroup Venture Capital LLC, which used to be known as Citicorp Venture Capital, is the major investor in a cluster of companies that include PBS Coals Inc., which markets the coal, and Quecreek Mining Inc., which holds the permits and mineral rights. During the rescue, attention was focused on Black Wolf Coal Co., the tiny firm that operates the mine as an independent contractor.
It isn't unusual for venture-capital firms to invest in coal. Such mines are considered solid investments, typically built around long-term contracts to sell output to utilities at set prices. A Citigroup spokeswoman declined to comment on any aspect of the relationship, referring calls to Mincorp Acquisitions Inc., the company through which it controls PBS, Quecreek, and other associated coal operations. [continues at site]
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