New Company Enters Possible Deal for Idle Wyoming Coal Mines
GILLETTE, WY. (AP) — Another coal company has entered a potential bankruptcy deal that could allow two idle Wyoming coal mines to reopen.
Bristol, Tennessee-based Contura Energy announced Wednesday it has reached a tentative deal to pay Jasper, Alabama-based FM Coal $90 million to take the Eagle Butte and Belle Ayr mines.
Milton, West-Virginia-based Blackjewel filed for bankruptcy July 1 and shut down the Powder River Basin mines, putting some 600 people out of work. Contura owned the mines previously and still holds their Wyoming permits.
A bankruptcy court in August approved the mines’ purchase by Contura but the deal has been held up while the U.S. government seeks payment of federal mineral royalties.
The Casper Star-Tribune reports the new deal would need approval from a bankruptcy judge and Contura’s board of directors.
Information from: Casper (Wyo.) Star-Tribune, http://www.trib.com