NERCO
| Company type | Public (from August 1984) |
|---|---|
| Industry | Mining, Energy |
| Founded | 1977 |
| Founder | Pacific Power & Light Company |
| Defunct | 1993 |
| Fate | Acquired by Kennecott Corporation (Rio Tinto Group) |
| Headquarters | Portland, Oregon , United States |
| Products | Coal, natural gas, oil, gold, silver, gallium arsenide wafers |
Number of employees | 2200 (1992) |
| Parent | Pacific Power & Light Company (until 1993) |
NERCO was a mining enterprise headquartered in Portland, Oregon, engaged in the extraction of coal, natural gas, and oil, alongside substantial operations in gold and silver mining, as well as the production of gallium arsenide wafers.
The company was established in 1977 by Pacific Power & Light Company following modifications to U.S. federal legislation concerning federal coal lease development. Initially focused on coal, NERCO broadened its scope to include other mining sectors, such as a failed venture into uranium extraction. In August 1984, NERCO became publicly traded by offering 10% of its shares on the New York Stock Exchange. By 1992, the firm reported annual revenues of $920 million and had a workforce of approximately 2,200 employees. It was listed on the Fortune 500 from 1985 through 1993, achieving its highest rank at 353 in 1992.
In 1993, Utah-based Kennecott Corporation, a subsidiary of the Rio Tinto Group, purchased NERCO for $470 million plus the assumption of debt. At that time, Pacific Power & Light Company owned an 82% interest in NERCO. Later that same year, Rio Tinto sold off NERCO’s oil and gas divisions for $510 million.
Following the acquisition, Tom Albanese, who would later serve as CEO of Rio Tinto Group, joined the organization after his previous employer, NERCO, was absorbed.