Cloud Peak, Ambre postpone US mine acquisition
JOHANNESBURG (miningweekly.com) – US coal miner Cloud Peak Energy and Australian company Ambre Energy on Wednesday indefinitely postponed the proposed acquisition by Ambre of Cloud Peak’s 50% interest in the Decker mine, in Montana.
The parties, which each held a 50% stake in the mine, announced in December 2012 that they had entered into an agreement to allow Ambre to buy Cloud Peak’s interest in the mine, as well as all related assets. Ambre was also required to take responsibility for all reclamation liabilities, including Cloud Peak’s $70.7-million in outstanding reclamation and lease bonds for the mine.
The acquisition had been scheduled for completion in March, but was delayed.
In July, Cloud Peak also expressed doubt about Ambre’s availability of funds to replace Cloud Peak’s outstanding reclamation and lease bonds for the mine.
The parties said on Wednesday that while discussions regarding the proposed acquisition would continue, neither expected the deal to be concluded in the foreseeable future.
Further, the companies have also dismissed litigation against each other, entered into in July 2012 over their differing views of the future of the Decker mine. This would give them time for the ongoing discussions to take place.
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