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Wyoming’s Coal Mines Still Idle as Purchase Talks Continue

Coal News - Published on Mon, 19 Aug 2019

Image Source: The Sheridan Press
Gillette News Record reported that coal giant Contura Energy has yet to complete the purchase of two Wyoming mines from bankrupt operator Blackjewel. Despite promising to “reinstate immediately” 500 jobs at the idling Eagle Butte and Belle Ayr mines, the company has yet to reach a necessary agreement with the federal government and resuscitate the mines, fueling further ambiguity throughout Wyoming’s coal country. Contura Energy said that “Contura has been in diligent discussions with the debtor and the relevant federal agencies, though no agreement has yet been reached.”

Despite receiving approval from a federal bankruptcy judge on Aug. 6 to purchase three Blackjewel mines, Contura has not secured approval from the federal government to finish the sale. The company is battling federal agencies over unpaid royalties and contested leasing, according to statements made in court.

Blackjewel owed approximately USD 60 million in federal royalties when it filed for bankruptcy. If Contura does receive approval to operate the mines, it will still need to enter a final order with a federal court. But Wednesday’s announcement suggested an agreement between federal agencies and the successful bidder could break down.

The company stated in its financial report “There can be no assurance that a settlement among the parties can be reached.”

Source :

Posted By : Sanju Moirangthem on Mon, 19 Aug 2019
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