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KENNECOTT TO BUY CORDERO COAL MINE FROM SUN COMPANY, ADDING TO ITS POWDER RIVER BASIN HOLDINGS

 SALT LAKE CITY and PHILADELPHIA, Feb. 22 /PRNewswire/ -- Kennecott Corporation and Sun Company, Inc. (NYSE: SUN) jointly announced today that Kennecott has agreed to purchase Cordero Mining Co. from Sun Company for $120.5 million.
 The Cordero Mining Co. operates the Cordero Mine in Wyoming's Powder River Basin. This open pit operation is the seventh largest coal mine in the United States. The purchase, which is subject to government approval, is expected to be completed in approximately 30 days.
 This acquisition follows on the heels of Kennecott's purchase of Nerco Inc., and its Powder River Basin coal properties announced last week. It positions Kennecott as a major coal producer with about 16 percent of the Powder River Basin's coal production.
 "This opportunity complements and enhances Kennecott's recent entry into coal in the Powder River Basin," said Kennecott President and Chief Executive Officer G. Frank Joklik. "This purchase gives us the opportunity to increase our coal production and reserves, and we are optimistic about the future of the Cordero property. The mine produced 13.3 million tons of coal in 1992, but the potential is there to increase production at little cost to 17 million tons per year."
 The Cordero mine is located 25 miles southwest of Gillette, Wyo. Since it opened in 1976, the mine has produced 148 million tons of high quality, low sulfur coal. With a reserve of 385 million tons, Cordero has an expected mine life of 28 years at current production rates. Over 60 percent of the production from Cordero is sold on long-term contracts to power companies in the Midwest and Texas.
 The Powder River Basin contains the largest coal resource in the United States. This western U.S. coal producing region is known for its modern, efficient mines and low sulfur content coal. With the acquisitions of Nerco and Cordero Mining Co., Kennecott's estimated combined coal production will be 32 million tons per year and the company's total Powder River Basin coal reserves will be 1,019 million tons.
 Kennecott is the third largest copper producer in the United States, accounting for roughly 15 percent of the nation's copper supply. Known for its famous Bingham Canyon Mine, Kennecott also has precious metals operations in five states, as well as interests in undeveloped mineral properties throughout North America. The company's management, engineering, and exploration staff is headquartered in Salt Lake City. Kennecott Corporation is a wholly-owned subsidiary of The RTZ Corporation PLC.
 Following a recent restructuring, the Philadelphia-based Sun Company, Inc. is now focusing on branded gasoline marketing, especially in the Northeast, and on its lubricants, chemicals, and logistics businesses. As part of its restructuring, Sun began seeking buyers for its coal properties last fall and is continuing to pursue the sale of its remaining coal and coke-making operations.
 /delval/
 -0- 2/22/93
 /CONTACT: Alexis Fernandez, manager of Media Relations of Kennecott, 801-322-8036, or Bud Davis, director of Media and Public Relations of Sun, 215-977-3485/
 (SUN)


CO: Kennecott Corporation; Sun Company Incorporated; Cordero Mining Co. ST: Pennsylvania, Utah, Wyoming IN: MNG OIL SU: TNM

MK -- PH003 -- 8793 02/22/93 08:38 EST
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Publication:PR Newswire
Date:Feb 22, 1993
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