America West Expands Thermal Coal Production

For the past two years, America West has used continuous mining in one section of Horizon, averaging approximately 25,000 tons of compliant thermal coal per month. With the arrival of the second continuous miner, the company expects to immediately commence deployment of the new miner in a second section of Horizon, which is expected to increase total monthly production to approximately 60,000 tons once the new continuous miner reaches fully operational status. Based on the company’s prevailing deployment strategy, the new miner should be operating at optimal capacity by the end of March 2011. At the 60,000 ton monthly production level, it is anticipated America West will become cash flow positive.