Cloud Peak Energy entered into a term coal export sales agreement with JERA Trading for shipments to start as early as the end of 2019 and continue for a period of between 30 and 40 months, reaching up to 1 million tonnes in the final contract year.
Coal produced at Cloud Peak Energy’s Spring Creek mine, located near Decker, Montana, will be carried by the BNSF Railway to Westshore Terminals at Roberts Bank, Vancouver, for loading onto ocean-going vessels for subsequent delivery to two IGCC power stations at Fukushima Japan.
The two 540-megawatt plants are being developed by Mitsubishi Corporation Power, along with Mitsubishi Heavy Industries, Mitsubishi Electric Corporation, Tokyo Electric Power Company Holdings, Incorporated and Joban Joint Power.
Cloud Peak Energy CEO Colin Marshall said the announcement showed the strategic importance of American energy resources to key Asian allies.
