PowerGen deal

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The Independent Online
A THIRD company, Morrison Knudsen, has been recruited into the PowerGen-led consortium formed to acquire certain assets of Mitteldeutsche Braunkohlewerke AG, a German state-owned mining and reclamation company. The other consortium member is NRG Energy, a subsidiary of Northern States Power.

Earlier this year, PowerGen was awarded exclusive negotiating rights for Mibrag by the Treuhand, the agency charged with disposing of assets of the former East German government. Under Morrison-Knudsen's agreement with NRG and PowerGen, it will be the mine operator with a one-third equity interest in the surface brown coal mines. The mines, 155 kilometres south-west of Berlin, are expected to produce 15 to 25 million tonnes of brown coal a year.