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Cloud Peak Selling Montana & Wyoming Coal Mines to Navajo Transitional Energy

Coal News - Published on Wed, 21 Aug 2019

Image Source: KPAX
Cloud Peak Energy announced that it's selling its three Power River Basin coal mines to the Navajo Transitional Energy Company, the winning bidder of its Chapter 11 bankruptcy auction. The sale, which was approved by a federal bankruptcy judge in Delaware, includes nearly all of Cloud Peak's assets. Navajo Transitional Energy will pay USD 15.7 million in cash, a USD 40 million secondary lien on all assets and a five-year royalty on future coal produced.

The New Mexico-based, tribally owned firm will also assume all tax and royalty payments and reclamation obligations up to USD 20 million. The deal also includes the Sequatchie Valley water reclamation project in Tennessee.

Navajo Transitional Energy leaders said they're excited to continue operations of the mines, which employ about 1,300 people, nearly all in Montana and Wyoming.

Mr Clark Moseley CEO of Cloud Peak Energy said that "NTEC will continue its efforts to lead conscientious energy development while striving to balance job growth and protecting the environment for future generations. We have proven by our extremely successful management of the Navajo Mine that we know the business and are capable of returning the Cloud Peak mines to, safe, stable and profitable operations while maintaining their excellent safety performance and reclamation efforts.”

Cloud Peak owns the Spring Creek mine in Montana and the Antelope and Cordero Rojo mines in Wyoming. Last year, the company sold 50 million tons of coal worldwide and supplied 58 coal plants with USD 832 million worth of coal.

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Posted By : Sanju Moirangthem on Wed, 21 Aug 2019
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