The terms of the agreement provide Cloud Peak Energy with an option to to export up to 16 million tons of coal annually through the planned dry bulk cargo Gateway Pacific Terminal.
The option is subject to the company securing a permit for the future completion of the terminal, which would accommodate cape size vessels.
Expected to begin operations in 2018, the Gateway Pacific Terminal is estimated to have an annual export capacity of up to 54 million tons of commodities, including 48 million tons of coal.
Cloud Peak Energy president and chief executive officer Colin Marshall noted that the agreement advances the company’s export strategy.
"In addition to our Spring Creek mine in the Northern PRB, our Youngs Creek acquisition last year and recently announced option and exploration agreements with the Crow Tribe provide us multiple, long-term development options to meet anticipated Asian demand for our low sulfur coal," Marshall said.
SSA Marine senior vice president Bob Watters stated, "We are very pleased to have Cloud Peak Energy as one of our base customers."
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