Coal deal hits a snag
A proposed deal on a Montana coal mine that supporters said would boost Asian exports of the fuel via the West Coast has stalled, as court documents show the companies involved are renegotiating terms of the sale.Representatives of the two companies said Wednesday that a deal still was expected. They would not disclose what prompted the renegotiation or what the new terms could entail.
The deal announced in December involved a complex transaction in which
Australia-based Ambre Energy would pay $57 million to Cloud Peak Energy for full control of the Decker mine near the Wyoming border.The cash payment was to increase to $64 million if the deal did not close by March 31, meaning the delay potentially already has cost Ambre $7 million.
Ambre wants to ramp up production from the once-bustling Decker mine and ship the coal to growing Asian markets through a pair of proposed ports along the Columbia River.But the company faces stiff opposition in Oregon and Washington state, and critics have questioned whether Ambre has the financial wherewithal to see its ambitious plans to fruition.
http://earthfix.kuow.org/energy/article/powder-river-basin-coal-export-deal-stalls/