The corporate transaction between Navajo Transitional Energy Company LLC (NTEC) and Cloud Peak Energy Company Inc (Cloud Peak) has been closed. The transaction empowers NTEC to purchase all Cloud Peak mining assets, making NTEC the third-largest coal producer in the country. Since the August 2019 initial sale order approval, NTEC has worked with Cloud Peak and its creditors to produce the transition.
NTEC has assumed ownership of the Powder River Basin, Wyoming Antelope and Cordero Rojo mines, which are the third and fifth largest coal mines in the US respectively, as well as the Spring Creek mine in Montana.
Through the bankruptcy buyout, the assets were acquired free of significant debt burdens. NTEC says it will return the Montana and Wyoming mines to profitability while retaining employees and sustaining taxes and royalties to the regions. The mines employ approximately 1200 employees and provide US$230 million in taxes and royalties to their respective states.
The lead attorney on the project said: "We had very positive expectations for this closing. Our client has a strong history of environmental stewardship and successful business oversight. This venture will be no different. We look forward to their continued success with these mines and are pleased that this complex transaction ended well for our client, for the environment and for the respective regional economies."
NTEC is a wholly-owned limited liability company of the Navajo Nation, which owns and operates the Navajo Mine, located on the Navajo Nation, south of Farmington, New Mexico. NTEC's mission emphasises being a reliable and safe producer of coal while diversifying the Nation's energy resources to create economic and environmental sustainability for the Navajo people. The mine has been supplying coal to the Four Corners power plant for the past 50 years.
Read the article online at: https://www.worldcoal.com/coal/25102019/navajo-transitional-energy-company-becomes-third-largest-us-coal-producer/