CLEVELAND, Sept. 25, 2019 /PRNewswire/ -- NACCO Industries,
Inc. (NYSE: NC) announced today that a subsidiary has entered into
a mining agreement to serve as exclusive contract miner for the
Thacker Pass lithium project in northern Nevada. Thacker Pass is believed to be the
largest known lithium deposit in the
United States and is 100% owned by Lithium Nevada Corp., a
wholly owned subsidiary of Lithium Americas Corp. (TSX: LAC) (NYSE:
LAC). The North American Coal Corporation formed a wholly
owned subsidiary, Sawtooth Mining, LLC, for this project.
Sawtooth will design, construct, operate, and maintain the
Thacker Pass surface mine, which will supply Lithium Nevada's
lithium-bearing claystone ore requirements. Consistent with North
American Coal's business model, which is focused on long-term,
management fee contracts, the mining agreement provides that
Lithium Nevada will reimburse Sawtooth for its operating and mine
reclamation costs, and pay Sawtooth a management fee per tonne of
lithium delivered during the 20-year
contract term. During the development of the project,
Sawtooth will provide Lithium Nevada $3.5
million in cash to assist in project development and provide
certain engineering services related primarily to mine design and
permitting. Under the terms of the mining agreement, Lithium
Nevada will pay Sawtooth a success fee upon achievement of certain
engineering, construction and production milestones. After
Lithium Nevada secures required permits and financing for the
project, Sawtooth intends to invest up to $50 million on the initial fleet of mining
equipment. Lithium Nevada will reimburse Sawtooth's equipment
investment over a seven-year period from the equipment acquisition
date. Lithium Nevada estimates that it will secure all major
permits by the end of 2020, commence plant construction in 2021 and
commence production of lithium products in 2023.
J.C. Butler, President and Chief Executive Officer of NACCO and
North American Coal said, "We are pleased to partner with Lithium
Americas to develop the Thacker Pass project, which we view as a
key part of developing a strong lithium battery industry in the
United States. We are highly confident that we can contribute
to success at Thacker Pass. We have built five new surface
mines for new customers in the last nine years, each providing an
integrated solution to customer operations, and we have a strong track record of partnering
with our customers for long-term success. This new mining
agreement is a significant milestone in our strategic goal to grow
and diversify by leveraging skills honed in our core mining
operations."
Forward-looking Statements Disclaimer
The statements
contained in this news release that are not historical facts are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These forward-looking statements are
made subject to certain risks and uncertainties, which could cause
actual results to differ materially from those presented.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date
hereof. The Company undertakes no obligation to publicly
revise these forward-looking statements to reflect events or
circumstances that arise after the date hereof. Among the
factors that could cause plans, actions and results to differ
materially from current expectations are, without limitation: (1)
changes in tax laws or regulatory requirements, including changes
in mining or power plant emission regulations and health, safety or
environmental legislation, (2) changes in costs related to
geological and geotechnical conditions, repairs and maintenance,
new equipment and replacement parts, fuel or other similar items,
(3) regulatory actions, changes in mining permit requirements or
delays in obtaining mining permits that could affect deliveries to
customers, (4) weather conditions, extended power plant outages,
liquidity events or other events that would change the level of
customers' coal or aggregates requirements, (5) weather or
equipment problems that could affect deliveries to customers, (6)
changes in the power industry that would affect demand for the
Company's mineral reserves, (7) failure or delays by the Company's
lessees in achieving expected production of natural gas and other
hydrocarbons; the availability and cost of transportation and
processing services in the areas where the Company's oil and gas
reserves are located; federal and state legislative and regulatory
initiatives relating to hydraulic fracturing; and the ability of
lessees to obtain capital or financing needed for well development
operations, (8) changes in the costs to reclaim mining areas, (9)
costs to pursue and develop new mining and value-added service
opportunities, (10) changes to or termination of a long-term mining
contract, or a customer default under a contract, (11) delays or
reductions in coal or aggregates deliveries, (12) changes in the
prices of hydrocarbons, particularly diesel fuel, natural gas and
oil, and (13) increased competition, including consolidation within
the coal and aggregates industries.
About NACCO Industries, Inc.
NACCO Industries, Inc.
is the public holding company for The North American Coal
Corporation. The Company and its affiliates operate in the mining
and natural resources industries through three operating
segments: Coal Mining, North American Mining and Minerals
Management. The Coal Mining segment operates surface coal
mines pursuant to a service-based business model under long-term
contracts with power generation companies and activated carbon
producers. The North American Mining segment provides
value-added contract mining and other services for producers of
aggregates, lithium and other minerals. The Minerals
Management segment promotes the development of the Company's oil,
gas and coal reserves, generating income primarily from
royalty-based lease payments from third parties. For more
information about NACCO Industries and North American Coal, visit
the companies' websites at
www.nacco.com and www.nacoal.com.
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SOURCE NACCO Industries, Inc.