Kennecott buys mine interest

An affiliate of Kennecott has bought an interest in Colowyo Coal, a surface mine south of Craig, Colo., which produces about 4 million tonnes annually of low-sulphur, high-Btu coal.

Kennecott’s deal, with W.R. Grace & Co., is worth US$218.3 million. Grace received US$192.8 million and retains a limited partnership interest in Colowyo.

Following completion of the deal, the Kennecott affiliate purchased a general partnership interest in Colowyo for US$25.5 million.

Kennecott, through its affiliates, is reported to be the fifth-largest coal producer in the U.S. and the country’s third-largest producer of copper.