The contemplated new coal supply agreement states that Westmoreland will take over operations at the beginning of 2016. The new coal supply agreement expires in 2022, but SJGS owners can extend the agreement beyond 2022, to coincide with the SJGS owners’ plans for operation of the plant after 2022.

“Westmoreland is delighted to establish a new relationship with the San Juan Generating Station,” said Keith E. Alessi, CEO, Westmoreland Coal. “The San Juan mine is a well-run operation with an excellent workforce that fits extremely well with our mine-mouth, contracted business model. We look forward to welcoming the International Union of Operating Engineers workforce along with all San Juan Coal Co. employees into the Westmoreland family and are certain that they will embrace our culture of safe production.”

The San Juan mine is one of America’s leading longwall operations. Last year it produced nearly 8.8 million tons of coal from a single face, placing it just below the four leading longwall mines, which cut coal from two longwall faces. In addition to production number, the mine has developed new technology and implemented ventilation techniques to remain competitive.