BNI Coal, Minnkota Sign 10-Year Extension to Coal Supply Agreement
April 28 2014 - 8:30AM
Business Wire
BNI Coal, an ALLETE (NYSE: ALE) company, has reached an
agreement with Minnkota Power Cooperative to continue supplying
lignite coal to the North Dakota electric generating cooperative
through 2037.
The agreement extends the current contract, which would have
ended in 2027, by 10 years. BNI Coal owns and operates a surface
lignite mine in Center, North Dakota, producing about 4 million
tons annually. Virtually all of BNI’s lignite production is
consumed by the nearby Milton R. Young Station, the primary source
of electrical generation for Minnkota.
Al Hodnik, ALLETE president, chairman and CEO, Robert “Mac”
McLennan, Minnkota president and CEO, and Wade Boeshans, president
and general manager of BNI Coal, finalized the agreement April 22
at BNI headquarters in Bismarck, North Dakota.
"The Minnesota Power-Minnkota Power Cooperative business
relationship, first forged in the 1970’s and furthered during
ALLETE's acquisition of BNI Coal in the late 1980’s, has always
been about partnership and mutual interest,” Hodnik said. “This
BNI-Minnkota coal supply agreement extension reflects that same
spirit, and we have appreciated the opportunity to work in close
partnership with Mac McLennan and his team on this and other
strategic matters important to our industry, our customers and to
the state of North Dakota."
The new agreement is a strong signal of BNI and Minnkota’s
commitment to the Center mine and North Dakota coal.
"This contract extension supports Minnkota's ability to deliver
the affordable and reliable energy generated by the Young Station
to our members in North Dakota and Minnesota,” McLennan said.
Boeshans said the agreement well positions BNI for long-term
planning and investment opportunities necessary for continued safe
and efficient mine operations. The stability afforded by extending
the contract terms will help BNI compete for skilled workers in
North Dakota’s very competitive job market, he said.
“Coal plays a significant and essential role in a balanced
energy-independent future for our nation. The lignite industry is
committed to providing low-cost reliable energy to consumers while
continuously reducing our environmental impact,” Boeshans said.
“We’re in it for the long term.”
BNI and Minnkota signed the original cost plus fixed-fee
agreement to supply the Young station in 1974. The 10-year
extension also includes the option to extend the agreement an
additional five years through 2042.
The statements contained in this release and statements that
ALLETE may make orally in connection with this release that are not
historical facts, are forward-looking statements. Actual results
may differ materially from those projected in the forward-looking
statements. These forward-looking statements involve risks and
uncertainties and investors are directed to the risks discussed in
documents filed by ALLETE with the Securities and Exchange
Commission.
ALLETEAmy Rutledge, 218-723-7400Manager - Corporate
Communicationsarutledge@allete.comorBNIWade Boeshans,
701-355-5500General Mgr. & President
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