Fresh from its anouncement of the acquisition of Nerco (NYSE), Kennecott says it has agreed to purchase Cordero Mining Co. which operates a low-sulphur coal mine in Wyoming’s Powder River Basin.
Nerco has three open-pit coal mines in the Powder River Basin which stretches from Montana to Wyoming. Kennecott says it will have about 16% of the basin area’s coal production.
Kennecott, a unit of RTZ (NYSE), says it will purchase Cordero from Sun Co. for US$120.5 million. The transaction is subject to government approval. The Nerco and Cordero acquisitions will give RTZ annual worldwide production of 39 million tonnes coal.
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