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Show 3,000 megawatt project Kaiser to develop Kaiparowitz coal mines Kaiser Industries Corporation and subsidiaries of three major electric utilities announced today they have signed a memorandum of intent to jointly develop a ten-million-ton-per-year underground un-derground coal mining facility in Southern Utah to fuel the 3,000 megawatt Kaiparowits Power Project. "The signing of this memorandum of intent signals another major step toward the development of Southern Utah's coal reserves which will contribute con-tribute significantly to the national goal of self-sufficiency in energy," said William R. Gould, Executive Vice President of Southern California Edison Company. Southern California Edison Company is the Project Manager for the Kaiparowits Power Project which it currently owns jointly with Arizona Public Service Company, San Diego Gas & Electric Company and Salt River Project. Equal Ownership The four equal owners of the coal mining facility will be a new subsidiary of Kaiser Industries; Mono Power Company, a subsidiary sub-sidiary of Southern California Edison Company; New Albion Resources Company, a subsidiary sub-sidiary of San Diego Gas & Electric Company; and Resources Company, a subsidiary sub-sidiary of Arizona Public Service Company. Development of the power project and mining facilities is contingent on Federal Government Govern-ment approvals and on availability of financing for the power and mining facilities. Kaiser's participation in the coal mining project is subject to executive of definitive agreements concerning the organization of the mining entity, upon execution of engineering, construction and operations contracts and upon execution of coal supply agreements with the participating electric utilities. Project Projections Development of the mining complex is expected to cost approximately $300 million. The complex will employ some 2,400 people. "Coal used to fuel the generating station will be the equivalent of 33 million barrels of oil annually," according to William R. Roesch, President and Chief Executive Officer of Kaiser Industries Corporation. It will be one of the largest underground un-derground coal mining facilities in the free world. A Kaiser subsidiary will manage the mining organization, with operating responsibility for the coal mining facilities in both pre-production and production stages. Engineering, procurement, and construction of the mining facilities will be performed by Kaiser Engineers. Initial Facilities The Coal mining facilities w ill initially consist of four underground un-derground mines, a coal preparation plant and related facilities, and conveyors to move coal to the power plant. Employees Em-ployees will be recruited in Utah and the Western States and trained in the most advanced training facility in the United States, to be built at the site. Exploration indicates the existence of sufficient quantities of low-sulfur coal to supply the Kaiparowits generating plant for its planned 35 year life. The Kaiparow its power project will supply electricity to consumers con-sumers in the southwestern United States. Construction is scheduled to begin in 1975, with the first of four 750-megawatt units scheduled for operation in 1980, and 3.000 megawatt operations by the end of 1982. |