SHERIDAN — Ambre Energy Limited announced late last week it will not buy out the 50 percent share of the Decker Mine from Cloud Peak Energy Inc. in the foreseeable future. Furthermore, the companies announced the lawsuit between the business partners has been dismissed without prejudice.
Last year, Cloud Peak Energy filed a lawsuit against Ambre Energy, citing a dispute regarding future operational goals and mismanagement of the Decker Coal Mine approximately 20 miles north of Sheridan. Ambre Energy filed a countersuit alleging Cloud Peak had a conflict of interest because it owns a nearby mine that competes with the Decker Mine.
The companies came up with an agreement in December that would allow Ambre Energy to buy out Cloud Peak’s 50 percent share of the mine and expand and excavate up to five million metric tons per year.
Ambre did not pay the $57 million purchase price of the mine by March 31, and per the agreement, the price jumped to $64 million. The agreement was the lawsuit would be dropped when the purchase of the mine was complete.
Ambre energy filed two extensions with the court to buy more time to complete the transaction, and first cited the complexity of the purchase and later lack of financial resources as reasons for needing more time.
Media Relations Manager Rick Curtsinger of Cloud Peak Energy did not provide additional details regarding the implications of the two companies remaining business partners.
“We are currently in discussions with Ambre Energy regarding the path forward and are not going to comment further at this time on the nature of our discussions or potential future activities at Decker Mine,” he said.