NACCO INDUSTRIES, INC. (NYSE:NC) Files An 8-K Other Events
Item 8.01 Other Events.
NACCO INDUSTRIES, INC. (NYSE:NC) Files An 8-K Other Events
As a result of the unexpected termination by Comisión Federal de Electricidad (“CFE”) of its coal supply contract with an affiliate of Dos Republicas Coal Partnership (“DRCP”), the contract mining agreement between Camino Real Fuels, LLC, a wholly-owned subsidiary of NACCO Industries, Inc., and its customer, DRCP, terminated on July 1, 2020. The termination of the contract between CFE and DRCP eliminated DRCP’s need for coal from Camino Real Fuels’ Eagle Pass Mine, and will result in mine closure.
On June 25 and 26, 2020, Camino Real Fuels issued a notice of prospective termination of employment to all employees of the Eagle Pass Mine. Camino Real Fuels is in negotiations with DRCP regarding performance of the required mine reclamation.
Camino Real Fuels commenced coal deliveries in 2015 and delivered 1.5 million tons of coal during 2019. Closure of the mine does not materially impact NACCO’s outlook for 2020. The contract mining agreement between Camino Real Fuels and DRCP was previously expected to terminate in 2021.
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About NACCO INDUSTRIES, INC. (NYSE:NC)
NACCO Industries, Inc. is a holding company with principal businesses, including mining, small appliances and specialty retail. The Company operates through three segments: NACoal, HBB and KC. Its subsidiaries include The North American Coal Corporation (NACoal), Hamilton Beach Brands, Inc. (HBB) and Kitchen Collection (KC). Its NACoal segment mines coal for use in power generation and provides mining services for other natural resources companies. NACoal’s mining operations include Mississippi Lignite Mining Company and Centennial Natural Resources. Its HBB segment designs, markets and distributes a range of small electric household and specialty housewares appliances, including blenders, can openers, coffeemakers, food processors, indoor electric grills, irons, mixers, slow cookers, toasters and toaster ovens. Its KC is a national specialty retailer of kitchenware and gourmet foods operating under the Kitchen Collection and Le Gourmet Chef store names in outlets and malls.
