Cloud Peak wins 350 million ton federal coal lease

Cloud Peak Energy Inc. was the successful bidder for a federal coal tract containing 350 million tons in the southern Powder River Basin, according to the Wyoming Bureau of Land Management.

Antelope Coal LLC, a subsidiary of Cloud Peak Energy, submitted a bid of $297.7 million, or about 85 cents per ton, for the “West Antelope II North Coal Tract.” The tract is just inside Campbell County’s southern border, and adjacent to the western and northern boundary of the Antelope coal mine.

Coal haul trucks wait to be loaded at the Belle Ayr mine south of Gillette. (Dustin Bleizeffer/WyoFile – click to enlarge)

It’s not the highest per-ton bid for Powder River Basin coal in Wyoming, but at 85 cents Cloud Peak Energy’s bid is a vote of confidence in the future of Wyoming coal. Back in the 1990s, Powder River Basin coal sold for less than $5 per ton at times, and mine operators paid about 15 cents per ton for federal coal tracts. Today’s “fair market value” of 75 cents-plus per ton is evidence that prices are not expected to slide much below $10 or stay there for long if they do take a dip.

However, the cost of mining continues to rise as mines dig deeper and further away from their original load-out facilities, which means if spot prices drag long-term contracts below $10 per ton,  mining companies might want to sit on production until prices bounce back. Meanwhile, Powder River Basin coal producers continue to eye the Asian thermal market, which analysts expect will pay more than $130 per ton, depending on heating value.

Cloud Peak Energy owns and operates the Antelope, Cordero and Spring Creek mines in the Powder River Basin.

— Contact Dustin Bleizeffer at 307-577-6069 or dustin@wyofile.com.

Dustin Bleizeffer covers energy and climate at WyoFile. He has worked as a coal miner, an oilfield mechanic, and for more than 25 years as a statewide reporter and editor primarily covering the energy...

Leave a comment

WyoFile's goal is to provide readers with information and ideas that foster constructive conversations about the issues and opportunities our communities face. One small piece of how we do that is by offering a space below each story for readers to share perspectives, experiences and insights. For this to work, we need your help.

What we're looking for: 

  • Your real name — first and last. 
  • Direct responses to the article. Tell us how your experience relates to the story.
  • The truth. Share factual information that adds context to the reporting.
  • Thoughtful answers to questions raised by the reporting or other commenters.
  • Tips that could advance our reporting on the topic.
  • No more than three comments per story, including replies. 

What we block from our comments section, when we see it:

  • Pseudonyms. WyoFile stands behind everything we publish, and we expect commenters to do the same by using their real name.
  • Comments that are not directly relevant to the article. 
  • Demonstrably false claims, what-about-isms, references to debunked lines of rhetoric, professional political talking points or links to sites trafficking in misinformation.
  • Personal attacks, profanity, discriminatory language or threats.
  • Arguments with other commenters.

Other important things to know: 

  • Appearing in WyoFile’s comments section is a privilege, not a right or entitlement. 
  • We’re a small team and our first priority is reporting. Depending on what’s going on, comments may be moderated 24 to 48 hours from when they’re submitted — or even later. If you comment in the evening or on the weekend, please be patient. We’ll get to it when we’re back in the office.
  • We’re not interested in managing squeaky wheels, and even if we wanted to, we don't have time to address every single commenter’s grievance. 
  • Try as we might, we will make mistakes. We’ll fail to catch aliases, mistakenly allow folks to exceed the comment limit and occasionally miss false statements. If that’s going to upset you, it’s probably best to just stick with our journalism and avoid the comments section.
  • We don’t mediate disputes between commenters. If you have concerns about another commenter, please don’t bring them to us.

The bottom line:

If you repeatedly push the boundaries, make unreasonable demands, get caught lying or generally cause trouble, we will stop approving your comments — maybe forever. Such moderation decisions are not negotiable or subject to explanation. If civil and constructive conversation is not your goal, then our comments section is not for you. 

Your email address will not be published. Required fields are marked *