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Closings, Cancellations and Delays

Coal Mines-Shovels

Coal Mines-Shovels

Company seeks its shovels back from two Wyoming coal mines


The Associated Press - May 11, 2020

GILLETTE, Wyo. (AP) — A mining equipment company based in Wisconsin has requested to either be paid or take its equipment from a Wyoming coal mining company that continues to operate a pair of its large coal shovels.

Komatsu Mining Corporation filed a motion Thursday seeking to immediately lift an automatic stay on assets that prevent the company from reclaiming its property, The Gillette News Record reported.

The stay was placed last year after Blackjewel LLC filed for bankruptcy, which included Belle Ayr and Eagle Butte coal mines in Campbell County, company officials said.

 
Eagle Specialty Materials acquired the mines from Blackjewel and previously claimed that allowing Komatsu Mining Corp. to take the shovels would force a mine closure.

“If the automatic stay is lifted, the two Wyoming mines will not be able to operate and hundreds of coal miners and related workers will immediately be out of work, leaving their financial future in doubt,” Eagle Specialty Materials said. “The shovels are absolutely essential to the operation of the mines in Wyoming.”

Eagle Specialty Materials also argued the shovels were part of the purchase agreement because they were considered assets of Blackjewel.

“ESM, who is not a party to any interest or tile in the shovels, is hiding behind the automatic stay while it converts Komatsu’s collateral value,” the motion said. The company continues to use the shovels “without any permission, title, legal interest or payment whatsoever.”

FM Coal executive Michael Costello declined to comment because of the ongoing legal proceedings. FM Coal is the parent company of Eagle Specialty Materials.



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