"Wyoming Coal Sale Canceled by U.S. on Bid at 15-Year Low"

"The U.S. government rejected the sale of coal in Wyoming after an auction drew the lowest top bid in 15 years, as the outlook for the power-plant fuel weakens because of cheap natural gas and new rules coming out this week."

"The Bureau of Land Management turned down the bid of $35 million, or 21 cents a ton, by Kiewit Mining Group Inc., based in Omaha, Nebraska, for the 167 million tons of Powder River Basin coal, the agency said today in a statement. The rejection follows a BLM sale in August that attracted no bidders.

The company’s offer was less than one-fifth what mining companies paid for similar deposits last year, and the lowest amount per ton since 1998. It didn’t meet the government’s estimate of fair value, the bureau said in a statement. "

Mark Drajem reports for Bloomberg September 18, 2013.

SEE ALSO:

"Environment Groups Set for New Fight Over Drilling on U.S.-Managed Utah Land" (New York Times)
 

Source: Bloomberg, 09/19/2013