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NTEC Purchases All Assets of Cloud Peak Energy

Coal News - Published on Fri, 23 Aug 2019

Image Source: NTEC
Navajo Transitional Energy Company announced a significant acquisition and expansion of operations outside the Navajo Nation paving the way for others to follow in its conscientious energy development footsteps. NTEC has purchased substantially all the assets of Cloud Peak Energy, a public company that has recently filed for bankruptcy. The primary assets are three coal mines located in the Powder River Basin of Wyoming and Montana: Antelope, Spring Creek and Cordero Rojo mines. The properties include surface and mineral rights to approximately 90 000 acres of land.

Cloud Peak Energy had suffered in recent years due to very high levels of debt created by borrowing to finance certain acquisitions. Despite solid performance at the mines themselves, the company was unable to sustain the finance costs associated with this debt. By making the purchase through the bankruptcy process, NTEC has acquired the assets free and clear of this debt burden. NTEC intends to re-focus operations on diligent mining and marketing fundamentals to achieve the same levels of operational and financial success it has accomplished at the Navajo mine.

Each of the three mines acquired by NTEC have different markets based on the quality and nature of the coal produced and each mine has reliable access to the markets they serve. In 2018, Cloud Peak Energy sold approximately 50 million t from its three mines to customers located throughout the US and around the world. The Antelope mine produces 23 million t of low sulfur, 8800 Btu coal, Cordero Rojo mine 12.6 million t of low sulfur, 8400 Btu coal, and Spring Creek mine 13.8 million t of low sulfur, 9350 Btu coal each year. In 2018, Cloud Peak Energy supplied fuel to over 58 power plants generating revenue of USD 832 million.

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Posted By : Sanju Moirangthem on Fri, 23 Aug 2019
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