Rio Tinto Energy America
Encyclopedia
Rio Tinto Energy America (RTEA) is a wholly owned American subsidiary
of the England and Australia-based mining giant, the Rio Tinto Group
, headquartered in Gillette, Wyoming
. The company, previously known as Kennecott Energy after another of Rio Tinto's American subsidiaries, was formed in 1993 when Rio Tinto purchased NERCO
and placed that company's Spring Creek coal mine and Antelope coal mine under the RTEA umbrella. Subsequent acquisitions included the Cordero Mining Company, the Colowyo Coal Company, and the Jacobs Ranch
coal mine. Today, RTEA operates four mines in Wyoming
and Montana
, supplying fuel for the generation of approximately 6% of the United States' electricity consumption.
In November 2007, Rio Tinto Group announced that it would try to divest RTEA and its assets. As a first step in that effort, Rio Tinto agreed in March 2009 to sell the Jacobs Ranch coal mine to Arch Coal
for a sum of $761 million.
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
of the England and Australia-based mining giant, the Rio Tinto Group
Rio Tinto Group
The Rio Tinto Group is a diversified, British-Australian, multinational mining and resources group with headquarters in London and Melbourne. The company was founded in 1873, when a multinational consortium of investors purchased a mine complex on the Rio Tinto river, in Huelva, Spain from the...
, headquartered in Gillette, Wyoming
Gillette, Wyoming
Gillette is a city in and the county seat of Campbell County, Wyoming, United States. The population was 29,087 in 2010. Gillette is a city centrally located in an area involved with the development of vast quantities of American coal, oil, and coal bed methane gas...
. The company, previously known as Kennecott Energy after another of Rio Tinto's American subsidiaries, was formed in 1993 when Rio Tinto purchased NERCO
NERCO
NERCO was an American mining company headquartered in Portland, Oregon with interests in coal, natural gas, and oil. The company also had significant operations in gold and silver mining, and manufacture of gallium arsenide wafers....
and placed that company's Spring Creek coal mine and Antelope coal mine under the RTEA umbrella. Subsequent acquisitions included the Cordero Mining Company, the Colowyo Coal Company, and the Jacobs Ranch
Jacobs Ranch
Jacobs Ranch is a large open-pit coal mine located 15 miles southwest of Wright, Wyoming in the coal-rich Powder River Basin. In 2007, the mine produced 38.1 million short tons of coal, making it the fourth-largest coal mine by production in the United States....
coal mine. Today, RTEA operates four mines in Wyoming
Wyoming
Wyoming is a state in the mountain region of the Western United States. The western two thirds of the state is covered mostly with the mountain ranges and rangelands in the foothills of the Eastern Rocky Mountains, while the eastern third of the state is high elevation prairie known as the High...
and Montana
Montana
Montana is a state in the Western United States. The western third of Montana contains numerous mountain ranges. Smaller, "island ranges" are found in the central third of the state, for a total of 77 named ranges of the Rocky Mountains. This geographical fact is reflected in the state's name,...
, supplying fuel for the generation of approximately 6% of the United States' electricity consumption.
In November 2007, Rio Tinto Group announced that it would try to divest RTEA and its assets. As a first step in that effort, Rio Tinto agreed in March 2009 to sell the Jacobs Ranch coal mine to Arch Coal
Arch Coal
Arch Coal is an American coal mining and processing company. The company mines, processes, and markets bituminous and sub-bituminous coal with low sulfur content in the United States. Arch Coal is the second largest supplier of coal in the U.S. behind Peabody Energy. The company supplies 16% of...
for a sum of $761 million.