Aug 19 2020 7:50 PM

San Miguel Electric Cooperative Announces New Operations Contractor at its South Texas Lignite Mine

CHRISTINE, Texas [August 19, 2020] – San Miguel Electric Cooperative (SMEC) has announced that North American Construction Group Ltd. (NACG) will be operating its lignite mine, which provides fuel for its power plant that produces 391 megawatts of affordable, reliable electricity for nine member cooperatives across 42 South Texas counties.

“We look forward to working with North American Construction Group, as together we provide the affordable, reliable electricity South Texans have relied on since our power plant opened in 1982,” said SMEC General Manager Mike Kezar. “That’s more than 78,000 homes and businesses that will continue to enjoy a safe, steady supply of power.”

NACG is a provider of heavy construction and mining services. For more than 65 years, the company has provided numerous services to large oil, natural gas and resource companies, including those in the coal sector.

“Our team is excited to be working with the San Miguel Electric Cooperative and continuing the great work that the mine has provided for South Texas over the past 38 years,” said NACG President Joe Lambert. “With our exceptional safety and managerial abilities, we look forward to a successful stay in Texas, working alongside such a talented team of local miners.”

Combined, the plant and the mine employ more than 400 workers, many of whom have either worked for the Cooperative or its mining contractors their entire careers. NACG retained a vast majority of the existing mine workforce with the new contract, roles that include facility engineers, large equipment operators and maintenance workers.

Payroll of both the plant and mine exceeds $40 million and contributes $3 million in payroll taxes annually. Additionally, the Cooperative contributes $1.8 million in local taxes and $68.7 million in annual payments for goods and services to the Texas economy. The Cooperative has contributed more than $100 million in property, school and county taxes since its formation in 1977. The plant and mine also support 1,200 indirect jobs in the community.

North American Construction Group’s five-year contract began on June 21, replacing the former mining contractor, Kiewit Mining Group.

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About San Miguel Electric Cooperative

The San Miguel Electric Cooperative, Inc. is a member-owned mining and power generation cooperative that serves the people of Texas' rural communities, working and living in partnership with its members. Through integrity, hard work and a commitment to safety, San Miguel maintains a dependable power supply at the lowest possible and competitive cost. Visit San Miguel Electric Cooperative for more information.