Aug. 30, 2019 (IEEFA) — A research brief published today by the Institute for Energy Economics and Financial Analysis raises questions about whether a Navajo Transitional Energy Co. (NTEC) bid to buy a bankrupt coal company’s assets is prudent, whether it was put together properly and if it is in line with NTEC’s responsibilities to its owner, Navajo Nation.
NTEC has proposed buying the core assets of recently bankrupt Cloud Peak Energy—three declining coal mines in the Powder River Basin of Montana and Wyoming (see previous report: “Proposed Navajo Acquisition of Bankrupt U.S. Coal Company Is an Ill-Timed Gamble,” IEEFA, August 2019). The deal would cost approximately $170 million at the outset and come with some $400 million in various reclamation and bonding liabilities.
IEEFA’s update, published today, “13 Questions on NTEC’s Bid to Buy Powder River Basin Coal Mines From Bankrupt Cloud Peak,” lists several points Navajo Nation leaders should consider before NTEC is allowed to proceed.
Among the questions raised in the research brief:
Full list and report here: “13 Questions on NTEC’s Bid to Buy Powder River Basin Coal Mines From Bankrupt Cloud Peak”
Karl Cates [email protected] 917 439 8225
Seth Feaster [email protected] 917 670 4025
David Schlissel [email protected] 617 947 9508
Dennis Wamsted [email protected] 703 862 9324
Vivienne Heston [email protected] 914 439 8921
The Institute for Energy Economics and Financial Analysis (IEEFA) conducts global research and analyses on financial and economic issues related to energy and the environment. The Institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy.