NEW YORK - Coal producer Consol Energy Inc. said Tuesday it formed a joint venture with Pittsburg and Midway Coal Mining, a unit of integrated oil company Chevron Corp., to develop a mine in Wyoming.
Financial details weren't disclosed.
Affiliates of the companies formed Youngs Creek Mining Co., which will develop the Youngs Creek Mine north of Sheridan in the Wyoming Powder River Basin coal field. The mine has the potential to produce 15 million tons of coal annually, the companies said.
The companies plan to submit permits for the mine in 2008, but said mine construction won't begin until sufficient coal sales come under contract.
Consol Energy Chief Executive J. Brett Harvey called the Youngs Creek mine "one of the best remaining in the Powder River Basin."
"Not only is it the highest Btu product being produced anywhere in the Wyoming portion of the basin, but the majority of the coal is owned outright rather than leased from the federal government as is more typical of Powder River Basin reserves," Harvey added.
Shares of Pittsburgh-based Consol Energy fell 18 cents Tuesday to close at $42.40 while shares of San Ramon, Calif.-based Chevron gave up 47 cents to close at $77.09. Both stocks trade on the New York Stock Exchange.