Rio Tinto Energy America

Rio Tinto Energy America (RTEA) was a United States coal-mining subsidiary of the Rio Tinto Group, the mining group headquartered in the United Kingdom and Australia. Based in Gillette, Wyoming, the company managed a portfolio of thermal-coal mining assets in Wyoming and Montana. It was created in 1993 after Rio Tinto acquired NERCO and placed NERCO's Spring Creek and Antelope coal mines under the new RTEA structure. The company had previously been associated with the Kennecott Energy name, reflecting Rio Tinto's wider American mining operations. RTEA expanded its coal portfolio through subsequent acquisitions. These included the Cordero Mining Company, the Colowyo Coal Company, and the Jacobs Ranch coal mine. At its height, the business operated four mines in Wyoming and Montana. Its production supplied fuel used in electricity generation in the United States, and the reference material describes the mines as contributing fuel for approximately 6% of U.S. electricity consumption. The company's role was therefore primarily industrial and upstream: it extracted and supplied thermal coal rather than selling a consumer-facing energy product under a retail brand. Rio Tinto began seeking a divestment of RTEA and its associated assets in 2007, as part of a broader effort to reduce or exit its exposure to the U.S. coal business. The divestment process included the March 2009 agreement to sell the Jacobs Ranch mine to Arch Coal for $761 million. Rio Tinto subsequently separated the remaining coal assets into Cloud Peak Energy. In 2010, the mines were spun off to Cloud Peak Energy, and Rio Tinto announced that it had completed the divestment of its equity holdings in Cloud Peak Energy through a fully exercised over-allotment connected with a secondary offering. After the transaction, the RTEA operating structure no longer represented an active Rio Tinto business. The historical entity is therefore best understood as a former Rio Tinto coal subsidiary rather than a continuing standalone brand. RTEA's history illustrates the consolidation and subsequent restructuring of the U.S. thermal-coal sector. Its formation brought several American coal operations into a Rio Tinto-controlled platform, while its later disposal reflected the parent group's decision to sell or separate those assets. The available reference material does not establish a continuing website, consumer brand program, or independent public listing for Rio Tinto Energy America.

Rio Tinto Energy America was established in 1993 as a Rio Tinto-controlled American coal-mining subsidiary. Its creation followed Rio Tinto's acquisition of NERCO, after which the Spring Creek and Antelope coal mines were placed under the RTEA umbrella. The business had also been known as Kennecott Energy, connecting it with another Rio Tinto American subsidiary and the group's historical mining presence in the United States. The company grew through the addition of further coal assets, including the Cordero Mining Company, the Colowyo Coal Company, and the Jacobs Ranch coal mine. It ultimately operated four mines in Wyoming and Montana. These operations produced thermal coal used as fuel for electricity generation. The available account characterizes the mines as supplying fuel associated with about 6% of U.S. electricity consumption, underscoring the scale of the portfolio within the American power-fuel market. In November 2007, Rio Tinto announced that it intended to sell RTEA and its assets. The first major step described in the available history came in March 2009, when Rio Tinto agreed to sell the Jacobs Ranch mine to Arch Coal for $761 million. The remaining operations were subsequently separated into Cloud Peak Energy. In 2010, the RTEA mines were spun off to Cloud Peak Energy, and Rio Tinto announced the complete divestment of its equity holdings in Cloud Peak Energy through a fully exercised over-allotment associated with a secondary offering. The transaction ended RTEA's role as an active Rio Tinto operating subsidiary. Cloud Peak Energy became the owner of the separated coal business, while Rio Tinto exited its equity position. RTEA is consequently a historical corporate entity whose significance lies in the assembly, operation, and eventual divestment of a major U.S. thermal-coal portfolio. The reference material does not provide evidence of a continuing independent company, consumer-facing brand, public ticker, or active corporate website.

• 2010

  Coal assets transferred to Cloud Peak Energy

  [1]Rio Tinto Energy Americaen.wikipedia.org

  RTEA's mines were spun off to Cloud Peak Energy, and Rio Tinto subsequently announced the complete divestment of its Cloud Peak Energy equity holdings.

• 2009

  Jacobs Ranch sale agreed

  [1]Rio Tinto Energy Americaen.wikipedia.org

  Rio Tinto agreed to sell the Jacobs Ranch coal mine to Arch Coal for $761 million.

• 2007

  Rio Tinto announces a planned divestment

  [1]Rio Tinto Energy Americaen.wikipedia.org

  Rio Tinto stated that it would seek to divest RTEA and its associated assets.

• 1993

  Rio Tinto Energy America is formed

  [1]Rio Tinto Energy Americaen.wikipedia.org

  Following Rio Tinto's acquisition of NERCO, the Spring Creek and Antelope coal mines were placed under the newly formed Rio Tinto Energy America structure.

• Additional coal assets are brought into the portfolio

  [1]Rio Tinto Energy Americaen.wikipedia.org

  RTEA subsequently expanded through the Cordero Mining Company, Colowyo Coal Company, and Jacobs Ranch coal mine.

A wholly owned industrial coal-mining subsidiary serving the U.S. electricity-generation fuel market.

• Energy raw material

  Thermal coal

  RTEA produced thermal coal from mines in Wyoming and Montana. The coal was supplied primarily as fuel for electric-power generation, making the business an upstream industrial supplier rather than a retail energy provider.

• Coal mine

  Spring Creek coal mine

  Spring Creek was one of the mines placed under the RTEA structure after Rio Tinto acquired NERCO in 1993. It formed part of the company's Montana-based thermal-coal operating portfolio.

• Coal mine

  Antelope coal mine

  Antelope was another NERCO-derived operation assigned to RTEA at its formation. It was part of the company's Wyoming coal-mining assets serving the power-generation market.

• Coal mine

  Jacobs Ranch coal mine

  Jacobs Ranch was an RTEA coal mine that became an early part of Rio Tinto's divestment program. Rio Tinto agreed in 2009 to sell the mine to Arch Coal.

• Coal-mining operations

  Cordero Mining Company and Colowyo Coal Company

  These operations were among the coal businesses subsequently incorporated into RTEA's broader U.S. portfolio. The supplied reference material identifies them as acquisitions but does not provide further operating or product detail.

• 2010

  Spin off remaining mines to Cloud Peak EnergyM&A

  Background

  After the planned divestment began, Rio Tinto separated the remaining RTEA mines into Cloud Peak Energy.

  Action taken

  The mines were spun off to Cloud Peak Energy, followed by Rio Tinto's complete divestment of its equity holdings in the company.

  Aftermath

  Cloud Peak Energy became the corporate vehicle for the former RTEA operating assets, ending Rio Tinto's ownership interest.

  Source

• 2009

  Sell Jacobs Ranch to Arch CoalM&A

  Background

  The Jacobs Ranch sale was presented as an initial step in Rio Tinto's planned divestment of RTEA assets.

  Action taken

  Rio Tinto agreed to sell the Jacobs Ranch coal mine to Arch Coal for $761 million.

  Aftermath

  The sale reduced the RTEA asset base and advanced Rio Tinto's withdrawal from the U.S. coal portfolio.

  Agreed sale value. $761 million (2009 announced transaction)

  Source

• 2007

  Begin divestment of U.S. coal businessStrategy

  Background

  Rio Tinto announced that it would attempt to divest RTEA and its associated coal assets.

  Action taken

  The group initiated a staged disposal process, beginning with individual asset sales and later separating the remaining mines into Cloud Peak Energy.

  Aftermath

  The process ultimately removed RTEA's coal operations from Rio Tinto's ownership.

  Source

1. 1Rio Tinto Energy Americaen.wikipedia.org