NTEC Acquires 3 Coal Mines in Powder River Basin
NTEC’s winning bid includes a $15.7 million cash payment at closing, a $40 million second lien promissory note and a fiveyear term royalty on future tons produced. “This purchase is both exciting and historic,” NTEC Management Committee Chair Tim McLaughlin said. “Indian tribes have long had a deep connection to the earth, and for the first time, a tribal company will now lead thoughtful and diligent energy development on a national level.”
This purchase will make NTEC the third-largest coal producer in the U.S., according to NTEC CEO Clark Moseley. “NTEC will continue its efforts to lead conscientious energy development while striving to balance job growth and protecting the environment for future generations,” he said. “know the business and are capable of returning the Cloud Peak mines to, safe, stable and profitable operations while maintaining their excellent safety performance and reclamation efforts.”
NTEC’s annual revenue from all four mines (including Navajo) is projected to increase to more than $1 billion, Moseley said. CPE President and CEO Colin Marshall said the mines will continue to operate as normal. Subject to bankruptcy court approval, the transaction is expected to close in October.