NACCO INDUSTRIES, INC. (NYSE:NC) Files An 8-K Other EventsItem 8.01 Other Events.
NACCO Industries, Inc. ("the Company”) previously disclosed on a Form 8-K filed June 29, 2017 that Southern Company and its subsidiary, Mississippi Power, suspended start-up and operations activities involving the coal gasifier portion of the Kemper County energy facility. North American Coal, a wholly-owned subsidiary of the Company through its wholly-owned subsidiary, Liberty Fuels Company, is the sole supplier of coal to fuel the gasifier at the Kemper County energy facility under its contract with Mississippi Power. On August 4, 2017, Liberty Fuels Company issued a Worker Adjustment and Retraining Notification (“WARN”) Act Notice to 75 employees of the Company’s Liberty Mine. The employment of these employees is expected to be terminated after the required 60-day WARN Act Notice period. The Company does not expect any financial impact as a result of the terminations due to the nature of its contract with Mississippi Power. Should the decision to suspend operations of the gasifier and mine become permanent, it will unfavorably affect North American Coal's long-term earnings under its contract with Mississippi Power.
North American Coal continues to operate under its contract with Mississippi Power and will support its customer pending a final decision on the continued operation of the gasifier and the Liberty Mine. The terms of the contract specify that Mississippi Power is responsible for all mine closure costs, should that be required, with the Liberty Fuels Company specified as the contractor to complete final mine closure.
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.