Bowie Resource Partners will supply all of PacificCorp’s Huntingdon power plant’s coal needs through to 2029 and buy about 50 million t of undeveloped high-heat low-sulfur coal reserves from the power company.
The deal will see Bowie supply the Huntingdon plant with about 2.8 million tpy of coal.
“We are excited about this unique fifteen year partnership with our largest customer," said Bowie’s Executive Chairman, John Siegel. The transaction is expected to close in the 1H15, subject to customary closing conditions, including approval of certain state public utility service commissions.
Bowie Resource Partners is the largest western bituminous coal producer with four underground mines in Utah and Colorado.
Written by Jonathan Rowland.