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7/3/2012
Rail News: HomePage
Cloud Peak Energy acquires undeveloped Powder River Basin mine on BNSF line
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Yesterday, coal producer Cloud Peak Energy Inc. announced it acquired Youngs Creek Mining Co. L.L.C. and other coal-related and surface assets from Chevron U.S.A. Inc. and CONSOL Energy Inc. for $300 million.
The transaction enables Cloud Peak Energy to lease 450 million tons of in-place coal for $195 million, and purchase and lease 38,800 acres for $105 million. The coal and land are well suited to support potential increased coal exports through the Pacific Northwest, Cloud Peak Energy officials said in a prepared statement.
Youngs Creek is a permitted, but undeveloped surface mine in the northern Powder River Basin (PRB) near Sheridan, Wyo., that would be served by BNSF Railway Co. Future development and production depends on the availability of additional export terminal capacity on the West Coast and continued strong Asian demand for thermal coal, Cloud Peak Energy officials said.
“The location of the coal and surface lands close to the Spring Creek mine and its rail spur should reduce development costs and allow future operating synergies to be realized,” said Cloud Peak Energy President and Chief Executive Officer Colin Marshall. “This coal has the same geographic and quality advantages over southern PRB coal as the Spring Creek mine, which have allowed us to make the majority of PRB export sales in recent years.”
The transaction enables Cloud Peak Energy to lease 450 million tons of in-place coal for $195 million, and purchase and lease 38,800 acres for $105 million. The coal and land are well suited to support potential increased coal exports through the Pacific Northwest, Cloud Peak Energy officials said in a prepared statement.
Youngs Creek is a permitted, but undeveloped surface mine in the northern Powder River Basin (PRB) near Sheridan, Wyo., that would be served by BNSF Railway Co. Future development and production depends on the availability of additional export terminal capacity on the West Coast and continued strong Asian demand for thermal coal, Cloud Peak Energy officials said.
“The location of the coal and surface lands close to the Spring Creek mine and its rail spur should reduce development costs and allow future operating synergies to be realized,” said Cloud Peak Energy President and Chief Executive Officer Colin Marshall. “This coal has the same geographic and quality advantages over southern PRB coal as the Spring Creek mine, which have allowed us to make the majority of PRB export sales in recent years.”
