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.::;
<br />
<br />Ute
<br />shares of
<br />~nvtrtrble into atiout2.75 intllion $:A:, operates 96 Ialw of power iri Chile's northern area and is
<br />_ building a 150 Ivlw unit u the pbrt city of Iv'fejillones (11-21-94
<br />Lampe said Ashland Oil increased its slake in the coal trom-
<br />pany to increase its share of Ashland Coal's excellent cash flow.
<br />He said the oil company is not interested in increasing its stake in
<br />Ashland Coal.
<br />Lampe said Ashland Oil approached Saarbergwerke with the
<br />suggestion for the btryouL.He said the iwo faros' relatiotLShip is
<br />excellent and iltat Saarbagwerke's two members on Ashland
<br />Coal's boazd of directors may serve out their torten[ terms if they
<br />choose. With the deal, Ashland wit(control about 54 percent of
<br />Ashland Coal, Spanish coal agentCarboex will control 10 percent
<br />and the general public holds the remaining shares.
<br />KENNECOTT CLOSES ON COLOWYO; ~
<br />CASH PAYMENT IS 525.5 MILLION FOR MINE 7
<br />W.R. Grace Co. and KennecoU Corp. announced last week that
<br />KennecoU Energy had completed the acquisition of Grace's
<br />Colowyo Coal Co. subsidiary. The acquisition has been in the
<br />works since early this year.
<br />As part of the artangement, Grace received $25.5 million cash
<br />and $192.8 million in non-recourse financing securt~ by long-
<br />termcoal contracts. Kennecon becomes Colowyo's general part-
<br />nerand defacto owner. Grace will be a limited partner [o receive
<br />apart of payments from long-term coal contracts held byColowyo.
<br />Colowyo produces about 4 million Uy of coal, most of it under
<br />long-term contract w the city of Colorado Springs and to Central
<br />Power & Light of Texas. Its crown jewel is a long-term contract
<br />with Colorado Springs which is priced at about $32/t The city
<br />aUempted to reduce the contract price unilaterally in 1992, which
<br />led to a court suit in which the Colorado S upreme Court endorsed
<br />the contract at its current pricing and ordered the city to pay $21.4
<br />million in withheld coal payments withheld by the city:
<br />SOUTHERN ELECTRIC GROWS IN CHILE;
<br />ACQUIRES MAJORITY INTEREST IN UTILITY
<br />Southern Electric International, the independent power subsid-
<br />iary of the southern Co., has acquired a majority interest in the
<br />Coa(Week.).
<br />When it acquved its smaller slake in Edelnor, SEI took over
<br />constrnction of the Mejdlones plant ItpLlns to start work on a 160
<br />Mw unit It also is handling coal supply fa the plant and last
<br />month Southern Company Services issued an international tender
<br />for about 400,000 metric wnnes/y for Mejillorles I.
<br />"Tile growdt of Chile's northern copper industry -which
<br />represents a significant economic development in Edehar's
<br />services area -and the Chilean government's encouragement of
<br />private power were major factors in Southern Electric's decision
<br />w increase our investment in Edelnor," Boren said in an an-
<br />nouncement
<br />ILLINOIS TRIES TO KEEP KINCAID LOCAL;
<br />UMWA, COAL GROUP ASK EDGER FOR AID
<br />Blinois coal officials are making a last-ditch e(lt3rt to prevent
<br />Commonwealth Edison from buying Westemcoal for its two-unit
<br />Kincaid generating plant which (or years has bttmed Illinois coal.
<br />CommEd has indicated it will use low-sulfur Utah coals at
<br />Kincaid, at least [}trough 1995, if ongoing tests prove satisfactory
<br />(I 1-28 Coal Week). Kincaid has burred high-sulfttr coal from
<br />Peabody Coal's nearby Pawnee No.10 underground mine, which
<br />closed earlier this year. Attempts to sell the mine and arrange a
<br />long-tens supply agreement with CommEd havebcen unsuccess-
<br />ful thus Car....
<br />Last week, ]ce Angleton, IOinois president of the United Mine
<br />Workers of America, sent a letter w Gov. Jim Edgar urging him
<br />to do whaz he can to preserve the Kincaid market far in-state
<br />producers. "i told him we have at least four companies in Illinois
<br />that can deliver Phase I coal" to the plant, Angleton told Coal
<br />Week. The Chicago-based utility has said it is looking at Western
<br />coal to comply with Phase I of the 1990 Clean Air Act Amend-
<br />ments, which take effect Jan. 1.
<br />Angleton also told the governor CommEd tentatively had
<br />agreed to purchase 2.2 million tons annually from Pawnee 10
<br />during negotiations with a company that wanted to buy the mine.
<br />COAL WEEK
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