The transaction includes approximately 118 million tons of coal reserves, enough for 20 years of production; a skilled and stable workforce; recently installed state-of-the-art coal preparation and loadout facilities; strong customer commitments; and an expansive fleet of well-maintained mining equipment. Additionally, substantially all of Kemmerer’s projected production for 2012 through 2016 is committed and priced under existing sales contracts.
“Strategically, the Kemmerer mine fits well with our existing mine mouth operations,” said Keith Alessi, president and CEO, Westmoreland. “The mine has a diversified base of stable customers, both utility and industrial. Under Chevron’s stewardship, the mine has been well managed and its capital equipment is in excellent condition. We hope to close the transaction by January 31, 2012.
“We view the Kemmerer workforce, which totals approximately 290 people, as a core component of the transaction. The employees of Kemmerer will be a tremendous addition to our company and we look forward to welcoming them to the Westmoreland family,” said Alessi. “These skilled employees share our core values of uncompromised safety and environmental excellence.”
The transaction is subject to certain customary conditions and approvals and has already been approved by the Westmoreland board and the appropriate governing bodies at Chevron Mining.