The Crow Tribe of Indians and Cloud Peak Energy have joined with SSA Marine to become partners in the Gateway Pacific Terminal (GPT), which is in the northwest of Washington State.
SSA Marine will remain the majority owner with 51% shares, Cloud Peak Energy will obtain 49% and the Crow Tribe will have an option to secure 5% from Cloud Peak.
Bob Watters, Senior Vice President of SSA Marine, said: “The deal is a win-win for all involved. GPT benefits from the addition of strategic partners such as the Crow Tribe and Cloud Peak Energy and the new shareholders benefit from ownership flexibility common with a project awaiting permits.”
Chairman Darrin Old Coyote of the Crow Tribal Executive Branch, stated: “This unique opportunity is a continuation of our mutually beneficial relationship with Cloud Peak Energy and further increases the potential for developing the Crow Tribe’s coal resources. Development of Tribal coal will help diversify the Tribe’s long-term revenues and provide much needed, family-wage Tribal jobs. We look forward to helping make the GPT a reality and realising substantial benefits for the Tribe.”
Cloud Peak paid US$2 million upon signing and will pay all future permitting expenses up to US$30 million, which is anticipated to cover expenses through to 2019. The company has the right to leave the investment at any point during the permitting phase. The company has also agreed an existing throughput option with GPT that will provide Cloud Peak with up to 17.6 million short t of capacity each year.
Colin Marshall, Cloud Peak Energy’s President and CEO, commented: “We are pleased to become an owner of this very important project that could allow US coal to meet growing demand in South Korea, Japan and Taiwan. Although the project currently faces a challenging permitting process, we are confident that if the project is assessed on its merits, it will be approved, meet all federal and state regulations and bring significant jobs and prosperity to Washington State, the Crow Tribe, Montana, and Wyoming. The initial US$2 million payment and ownership flexibility allow us to take part in this opportunity with very limited risk.
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/handling/14082015/additional-partners-in-the-gateway-pacific-terminal-2734/
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