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SRP To Pay Millions To Settle Claims Over Mine Closure

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Salt River Project has agreed to pay $21 million to settle claims from Peabody Energy over the closure of the Kayenta coal mine in northern Arizona.

The mine closed in August after sending its last coal shipment to the Navajo Generating Station near Page, Arizona.

The power plant shut down Monday after a 45-year run.

According to the Arizona Republic, Peabody Energy claimed SRP owed the coal company $53 million for forcing the mine to close prematurely.

Both once were slated to operate until 2044, but the plant owners decided to shut down the generating units in 2019, effectively shutting down the mine.

Peabody says SRP owed it millions for expenses, including severance pay to laid-off miners and equipment bought for the mine that wasn't put to its full use.

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