Casper, WY – The Bureau of Land Management has rejected a bid to purchase coal reserves in the Powder River Basin because the bid came in below the estimated fair market value.
Cordero Mining, a subsidiary of Rio Tinto Energy America, was the only bidder for the "South Maysdorf" coal tract. The tract
includes about 288 million tons of coal 15 miles south of Gillette.
Cordero's bid was just over 42 cents per ton.
The BLM also rejected Cordero's bid for the "North Maysdorf" coal tract in October. The company bid was just more than 38 cents per ton.
Rio Tinto Energy America spokesman Jeff Price said the company will consider its options on its latest rejected bid.
The company file an appeal, ask to rebid, or doing nothing.
Bids for Wyoming coal have gone as high as 97 cents per ton.