NC - Nacco says Navajo mining contract terminated

Monty Rakusen/Cultura via Getty Images Nacco Industries ([[NC]] -6.9%) plunges after saying a contract mining agreement between its Bisti Fuels subsidiary and Navajo Transitional Energy will be terminated effective Sept. 30; the contract had been scheduled to expire in 2031. Bisti Fuels has been supplying coal from the Navajo Mine to the Four Corners Power Plant through the agreement with NTEC, which has chosen to begin operating the mine on its own. Bisti Fuels assumed operation of the mine at the start of 2017, and contributed $4.5M-$5.8M in pre-tax earnings during 2017-20. The company says the contract termination does not materially affect its 2021 outlook but "will have a material unfavorable effect on Nacco's long-term earnings." Last month, Nacco announced a 2.6% increase in its quarterly dividend.

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Nacco says Navajo mining contract terminated