RTZ-CRA Group's Kennecott To Buy Caballo Rojo Coal Mine From An Affiliate Of Drummond Company Inc.LONDON--(BUSINESS WIRE)--January 21, 1997--Kennecott Energy and Coal Company (100 percent owned by RTZ-CRA (NYSE NYSE See: New York Stock Exchange : RTZ RTZ Rio Tinto Zinc RTZ Return To Zero RTZ Return to Zork (game) RTZ Retail Trade Zone )) and Marigold marigold, any plant of the genus Tagetes of the family Asteraceae (aster family), mostly Central and South American herbs cultivated elsewhere as garden flowers. The two common species of marigold, both annuals, are distinguished as African, or Aztec (T. Land Company, an affiliate of Drummond Company Drummond Company, Inc. is a privately owned company based in Birmingham, Alabama, United States, involved in the mining and processing of coal and coal products. The company was founded in 1935 by H. E. Drummond, and remains under the management of his sons. Inc., have announced that Kennecott Energy and Coal Company has agreed to acquire the stock and related assets of Caballo Rojo Inc. (CRI CRI constant-rate infusion. ), and the assets of the Fort Union mine for a cash consideration of $99 million. This acquisition is subject to government approval and satisfaction of other contractual conditions. It is expected to be completed in the next few months. The principal operation of this acquisition is the Caballo Rojo mine, adjacent to Kennecott Energy's Cordero mine near Gillette, Wyoming Gillette is a city in Campbell County, Wyoming, United States. The population was 19,646 at the 2000 census. It is the county seat of Campbell CountyGR6. . Caballo Rojo is the sixth largest coal mine in the United States and produced 13.6 million tonnes of coal in 1996 from a reserve base of 318 million tonnes. The Fort Union coal mine, located approximately three miles north of Gillette produced 0.91 million tonnes in 1996. After the acquisition, total Kennecott Energy production will increase from 41 million tonnes to over 56 million tonnes and total Kennecott Energy reserves to 1.3 billion tonnes. This acquisition coupled with the recent expansions announced at the Cordero and Antelope mines will lift Kennecott Energy production to 82 million tonnes by 1999. "This is a tremendous opportunity for Kennecott Energy to add another highly productive Powder River Basin The Powder River Basin is a region in southeast Montana and northeast Wyoming about 120 miles east to west and 200 miles north to south known for its coal deposits. It is both a topographic drainage and geologic structural basin. mine to our portfolio," said Kennecott Energy President, Greg Boyce. "The Caballo Rojo mine is strategically located next to our Cordero mine, allowing Kennecott Energy to achieve substantial efficiencies and cost improvements through combining the operations. This purchase represents another step in our plan to become the most competitive producer of Western US, low sulphur coal." Kennecott Energy Company, through its affiliates, is the fourth largest coal producer in the United States. Holdings include the Antelope Coal Company, Spring Creek Coal Company, and Cordero Mining Company in the Powder River Basin of Montana and Wyoming, the Colowyo Coal Company LP in Colorado, as well as a 50 percent share of production in the Decker Coal Company in Montana. Kennecott Energy is an affiliate of Kennecott Corporation. Kennecott Corporation, through its affiliates, is the third largest producer of copper in the United States, accounting for roughly 15 percent of the nation's copper supply. Known for its famous Bingham Canyon Mine For the former city at this location, see . The Bingham Canyon Mine is an open-pit mine extracting a large porphyry copper deposit southwest of Salt Lake City, Utah, USA, in the Oquirrh Mountains. , Kennecott also has precious metals Precious Metals Valuable metals such as gold, iridium, palladium, platinum, and silver. Notes: Investing in precious metals can be done either by purchasing the physical asset, or by purchasing futures contracts for the particular metal. operations in five states. The company's management and engineering staff are headquartered in Salt Lake City. Kennecott is a member of the RTZ-CRA Group, the largest mining company in the world. CONTACT: Adriana Vellar RTZ Corporation PLC 011-44-171-753-2274 or Fraser Hardie RTZ Corporation PLC 011-44-171-753-2355 or Cameron King Gavin Anderson & Company 212-373-0218 |
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