Westmoreland Coal’s Board of Directors has “taken all necessary steps to enter into a purchase and sale agreement” for the purchase of the San Juan coal mine in New Mexico from BHP Billiton and to enter a new coal supply agreement with the San Juan coal-fired power plant.
“Today’s action by the Board of Directors completes the final steps towards entering into the definite purchase agreement on 1 July 2015, which coincides with finalising our binding coal supply agreement with [the owners of the San Juan power plant],” said Keith Alessi, CEO of Westmoreland in a company statement.
The acquisition of the mine is expected to close at the end of this year, while the new coal supply agreement would run through to 30 June 2022. “Westmoreland intends to operate the San Juan mine through the termination of the coal supply agreement and is hopeful an extension of the coal supply agreement can be reached that will extend the life of the mine far past the 2022 time frame,” concluded the company.
Westmoreland is an independent coal company with sub-bituminous and lignite opencast coal mining operations in the western US and Canada, and an underground coal mine in Ohio.
Written by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/mining/24062015/westmoreland-takes-final-steps-to-buy-san-juan-mine-2467/