Cloud Peak Energy Successful Bidder for West Antelope II South Coal Tract in Wyoming
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Cloud Peak Energy Inc. reported its successful bid for the West Antelope II South Coal Tract, which was previously nominated by the company’s Antelope mine. The BLM estimates this tract contains approximately 56 million tons of mineable coal. At year-end 2010, the company’s Antelope mine had an estimated 252 million tons of coal reserves, and Cloud Peak Energy had an estimated total reserve of 970 million tons of coal.
Cloud Peak Energy successfully won the lease sale with a bid of approximately $49.3 million, or $0.875 per ton, based on the BLM’s estimate of 56 million mineable tons. The company submitted a payment for approximately $9.8 million, which is the first of five equal payments for the federal coal lease. The BLM typically awards the lease within several months after selecting a winning bidder. As previously disclosed, the West Antelope II Lease by Application is subject to pending legal challenges filed by certain environmental organizations against the BLM and the Secretary of the Interior.
On May 11, Cloud Peak Energy reported its successful bid for the West Antelope II North Coal Tract, which the BLM estimates contains approximately 350 million tons of mineable coal.
“We’re very pleased with our acquisition of the West Antelope II South Coal Tract. Together with our recent successful bid for the West Antelope II North Coal Tract, these tracts are expected to more than double the reserves at the Antelope mine and, along with the additional coal within an existing State of Wyoming lease near our Antelope mine, add more than 12 years of production,” said Colin Marshall, president and Chief Executive Officer.
About Cloud Peak Energy®
Cloud Peak Energy Inc. is headquartered in Wyoming and is one of the largest U.S. coal producers and the only pure-play Powder River Basin (PRB) coal company. As one of the safest coal producers in the nation, Cloud Peak Energy specializes in the production of low sulfur, subbituminous coal. The company owns and operates three surface coal mines in the PRB, the lowest cost major coal producing region in the nation. The Antelope and Cordero Rojo mines are located in Wyoming and the Spring Creek mine is located near Decker, Montana. With approximately 1,500 employees, the company is widely recognized for its exemplary performance in its safety and environmental programs. Cloud Peak Energy is a sustainable fuel supplier for approximately 4 percent of the nation’s electricity.
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