Skip to main content

NRG Texas Power to terminate Jewett mine contract early

Published by
World Coal,


According to a Westmoreland Coal news release, NRG Texas Power (NRG) has provided notice that it will terminate the lignite supply agreement at the Jewett mine two years early on 31 December 2016.

Westmoreland intends to conduct the multi-year reclamation work for NRG following the conclusion of the supply contract.

“As NRG has decided to fuel its plant differently in response to current energy market conditions, we are shifting our focus to providing multi-year reclamation services. We have an outstanding track record of operating the Jewett mine safely and cost efficiently and plan to build on this performance during the reclamation phase,” said Kevin Paprzycki, Chief Executive Officer of Westmoreland Coal Co.

The lignite supply contract with NRG is a cost plus contract which accounts for approximately 2% of Westmoreland’s 2016 adjusted EBITDA guidance. Westmoreland expects to maintain positive cash flow generation at Jewett during the next several years with the cost plus arrangement continuing through reclamation. NRG is responsible for the reclamation liability so Westmoreland does not foresee using cash net of reimbursements for reclamation.

Edited from press release by Harleigh Hobbs

Read the article online at: https://www.worldcoal.com/mining/05092016/nrg-texas-power-terminates-jewett-mine-contract-early-2368/

You might also like

Dyno Nobel

[Webinar] Breaking new ground in mine blasting

Dyno Nobel will be discussing the latest innovations for making mine blasting more productive and less costly. Register for free today »

 

New Chair appointed for MCA

The Minerals Council of Australia (MCA) has today appointed a new Chair to lead the organisation.

 
 

Embed article link: (copy the HTML code below):