Cloud Peak Energy Inc. (NYSE:CLD), one of the largest U.S. coal
producers and the only pure-play Powder River Basin ('PRB?) coal
company, today announced a throughput option agreement with SSA Marine
that provides Cloud Peak Energy with an option for up to 16 million
tonnes of capacity per year through the planned dry bulk cargo Gateway
Pacific Terminal at Cherry Point in the State of Washington. The
terminal would accommodate cape size vessels. Cloud Peak Energy′s option
is exercisable following future permit completion for the terminal.
The Gateway Pacific Terminal is intended to be capable of exporting up
to 54 million tonnes of commodities, including 48 million tonnes of
coal, annually. Cloud Peak Energy′s potential share of capacity will
depend upon the ultimate capacity of the terminal. Subsequent to
receiving the required permits, SSA Marine anticipates approximately two
years for construction. Commercial operation is currently estimated to
commence in 2018.
'With up to 16 million tonnes of potential capacity at SSA Marine′s cape
size terminal, we are pleased to have completed the next step in
furthering our export strategy,? said Colin Marshall, Cloud Peak
Energy′s President and Chief Executive Officer. 'In addition to our
Spring Creek mine in the Northern PRB, our Youngs Creek acquisition last
year and recently announced option and exploration agreements with the
Crow Tribe provide us multiple, long-term development options to meet
anticipated Asian demand for our low sulfur coal. Development of the
Gateway Pacific Terminal will bring substantial revenues to federal,
state and local governments, high paying jobs and will also help with
the U.S. balance of trade.?
'We are very pleased to have Cloud Peak Energy as one of our base
customers. Cloud Peak Energy has a strong record for safe operations and
environmental stewardship. They have won national awards for their
environment restoration programs and work diligently to share those
programs and techniques with agencies such as U. S. Fish and Wildlife,
the Bureau of Land Management, the Natural Resource Conservation Service
and the Wyoming Department of Environmental Quality,? stated Bob
Watters, Senior Vice President of SSA Marine.
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 PRB
coal company. As one of the safest coal producers in the nation, Cloud
Peak Energy specializes in the production of low sulfur, subbituminous
coal. 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 near Decker, Montana. Cloud Peak Energy also owns rights to
substantial undeveloped coal and complimentary surface assets in the
Northern PRB, further building the company′s long-term position to serve
Asian export and domestic customers. With approximately 1,700 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 4% of the nation′s electricity.
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 our
management's current expectations or beliefs as well as assumptions and
estimates regarding our company, industry, economic conditions,
government regulations and energy policies and other factors.
Forward-looking statements may include, for example, (1) future
permitting, construction and development of the Gateway Pacific
Terminal, estimated timing for commercial operation and estimated
throughput capacity, (2) our exercise of options for capacity at the
terminal and the amount of capacity subject to any exercise, (3)
potential future benefits of the option agreement, (4) anticipated
future growth in Asian thermal coal demand, (5) our business development
and growth initiatives and strategies, (6) the potential development of
our Youngs Creek or other Northern PRB assets, and (7) other statements
regarding the option agreement, the Gateway Pacific Terminal and our
plans, strategies, prospects and expectations 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 from those expressed or implied in the
forward-looking statements, including the risks that (i) the Gateway
Pacific Terminal is not developed in a timely manner or at all, or is
developed at a smaller throughput capacity than planned, (ii) the terms
and conditions of the option agreement are not satisfied, the option
agreement is terminated or we are otherwise unable to finalize and enter
into a definitive throughput agreement that would govern our potential
future capacity at the terminal, (iii) we do not exercise some or all of
the option for capacity at the terminal, (iv) Asian export demand
weakens, or (v) anticipated benefits of the option agreement are not
achieved. For a discussion of some of the additional factors that could
adversely affect our future results or the anticipated benefits of the
option agreement, 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.
