Cloud Peak Energy announced today that its wholly-owned
subsidiary, Cloud Peak Energy Logistics (“CPEL”), has entered into
a term coal export sales agreement with JERA Trading Pte Ltd.
(“JERAT”), which is a trading company based in Singapore
(http://jeratrading.com/).
Shipments are expected to commence as early as the end of 2019
and continue for a period of between thirty and forty months,
reaching up to one million metric tonnes in the final contract
year.
Coal produced at Cloud Peak Energy’s Spring Creek Mine, located
near Decker, Montana, will be carried by the BNSF Railway to
Westshore Terminals at Roberts Bank, Vancouver, for loading onto
ocean-going vessels for subsequent delivery to two new
state-of-the-art Integrated coal Gasification Combined Cycle
(“IGCC”) coal-fired power plants in Fukushima Prefecture, Japan.
The two 540-megawatt IGCC plants are being developed by Mitsubishi
Corporation Power Ltd., along with Mitsubishi Heavy Industries,
Ltd., Mitsubishi Electric Corporation, Tokyo Electric Power Company
Holdings, Incorporated and Joban Joint Power Co., Ltd. IGCC systems
generate power using a combined cycle format incorporating coal
gasification and both gas and steam turbines. IGCC systems offer
enhanced generation efficiency, as well as reductions in carbon
dioxide (CO2) emissions of about 15% in comparison with the latest,
state-of-the-art, conventional coal-fired power plant designs and
substantially lower than most plants in operation in the United
States. The first new IGCC plant is scheduled to commence operation
in September 2020.
“Cloud Peak Energy is pleased to be part of the Fukushima IGCC
project and to help support Japan’s investment in next generation
coal technology,” said Colin Marshall, Cloud Peak Energy’s
President and CEO. “If similar plants were to be built in the U.S.
it would go a long way to addressing concerns about CO2 emissions
while providing low cost reliable electricity. Today’s announcement
also demonstrates the strategic importance of American energy
resources to key Asian allies.”
Ronan Lory, JERA Trading Managing Director, indicated that “JERA
Trading is glad to have secured a long-term coal sourcing agreement
with Cloud Peak Energy, it demonstrates that North America remains
a key supplier of quality coal for exports and vindicates our
decision to set up our new subsidiary JERA Trading North America,
LLC.”
About Cloud Peak Energy ®
Cloud Peak Energy Inc. (NYSE: CLD) is headquartered in Wyoming
and is one of the largest U.S. coal producers and the only
pure-play Powder River Basin coal company. As one of the safest
coal producers in the nation, Cloud Peak Energy mines low sulfur,
subbituminous coal and provides logistics supply services. 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 in Montana. In 2016, Cloud Peak Energy shipped
approximately 59 million tons from its three mines to customers
located throughout the U.S. and around the world. Cloud Peak Energy
also owns rights to substantial undeveloped coal and complementary
surface assets in the Northern PRB, further building the Company’s
long-term position to serve Asian export and domestic customers.
With approximately 1,300 total 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 three percent of the nation’s
electricity.
About JERA Trading
JERA Trading Pte Ltd. (JERAT) is a jointly owned company owned
two-thirds by JERA Trading International Pte. Ltd., a wholly owned
subsidiary of JERA Co. Inc. which is an equal joint venture between
two major Japanese electric power companies, TEPCO Fuel & Power
(Tepco) and Chubu Electric Power Company (Chubu), and one-third by
EDF Trading, the trading arm of EDF, the French leading low carbon
power producer in Europe.
JERAT is responsible for the global coal procurement of Chubu,
Tepco and EDF. It operates an integrated coal and freight supply
chain and has benefited from EDF Trading’s expertise in energy
commodity trading and risk management to minimize the costs and
optimize the revenues associated with the delivery of coal
requirements of its shareholders and third party customers.
JERAT is one of the leading utility-backed coal traders globally
with a presence in both the Atlantic and Pacific basins. It
operates in all major coal and freight markets (Europe, Asia, North
and South America) and trades both physical and financial
products.
JERAT is headquartered in Singapore with offices in London and
in Maryland. More information on http://www.jeratrading.com.
Cautionary Note Regarding Forward-Looking Statements
This release contains “forward-looking statements” within the
meaning of the safe harbor provisions of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Forward-looking statements are not statements of
historical facts and often contain words such as “may,” “will,”
“expect,” “believe,” “anticipate,” “plan,” “estimate,” “seek,”
“could,” “should,” “intend,” “potential,” or words of similar
meaning. Forward-looking statements are based on management's
current expectations or beliefs as well as assumptions and
estimates regarding our company, industry, economic conditions,
government regulations, energy policies and other factors.
Forward-looking statements may include, for example, (1) the
anticipated timing for commencement of coal shipments to JERAT, (2)
the anticipated sales volumes and duration of future sales to
JERAT, (3) estimated timing for commercial operation for JERAT’s
IGCC plants, (4) other statements regarding this transaction and
anticipated future benefits of this transaction and (5) other
statements regarding our plans, strategies, prospects,
expectations, beliefs, assumptions and estimates concerning our
business, industry, economic conditions, operating results,
financial condition and other matters that do not relate strictly
to historical facts. These statements are subject to significant
risks, uncertainties, and assumptions that are difficult to predict
and could cause actual results to differ materially and adversely
from those expressed or implied in the forward-looking statements,
including risks relating to the following factors: (i) JERAT’s IGCC
plants are not constructed or commissioned on the currently planned
schedule or at all, or at the currently planned size, due to
challenges associated with regulatory approvals and permits,
construction, financing, government policies or other issues, (ii)
logistics, transportation or mining related disruptions, delays or
other difficulties that adversely impact the timing or volumes of
our planned coal shipments or our logistics or mining costs, (iii)
performance issues or disputes under our agreements with JERAT or
with our rail and port logistics providers, (iv) the impact of
future seaborne coal pricing levels, or (v) other risks and
uncertainties that adversely impact our ability to realize the
anticipated benefits of the transactions described herein. For a
discussion of some of the additional factors that could adversely
affect our future results or the anticipated benefits of this
transaction, refer to the risk factors described from time to time
in the reports and registration statements we file with the
Securities and Exchange Commission (“SEC”), including those in Item
1A - Risk Factors in our most recent Form 10-K and any updates
thereto in our Forms 10-Q and current reports on Forms 8-K. There
may be other risks and uncertainties that are not currently known
to us or that we currently believe are not material. We make
forward-looking statements based on currently available
information, and we assume no obligation to, and expressly disclaim
any obligation to, update or revise publicly any forward-looking
statements made in this release, whether as a result of new
information, future events or otherwise, except as required by
law.
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version on businesswire.com: http://www.businesswire.com/news/home/20180116006386/en/
Cloud Peak Energy Inc.Rick Curtsinger,
720-566-2948Director, Public Affairs