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New mining agreement between Bisti Fuels and NTEC at a New Mexico coal mine

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World Coal,

Bisti Fuels Co. LLC, a subsidiary of The North American Coal Corp., has entered into a 15-year, cost-plus contract mining agreement with Navajo Transitional Energy Co. LLC (NTEC).

Under the agreement, Bisti Fuels will act as NTEC's contract miner at NTEC's Navajo coal mine, an opencast coal mine located within the Navajo Nation near Fruitland, San Juan County, New Mexico.

Production at the mine is projected to be approximately 5.9 million tpy of coal.

In accordance with a separate agreement, NTEC will deliver that coal to the third-party owners of the nearby Four Corners coal-fired power plant.

The agreement between Bisti Fuels and NTEC is a cost-plus arrangement, under which NTEC will pay Bisti Fuels' costs and a profit margin per short t.

The agreement consists of a transition period and a production period. During the transition period commencing on 1 January 2016, Bisti Fuels will transition into the contract miner role.

The production period is planned to begin when NTEC completes a pending commercial transaction with the existing contract miner. This is expected to occur during the 2H16.

Edited from press release by Harleigh Hobbs

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