Westmoreland to Acquire Kemmerer Mine
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, substan-tially all of Kemmerer’s projected produc-tion for 2012 through 2016 is committed and priced under existing sales contracts.
“Strategically, the Kemmerer mine fits well with our existing mine mouth opera-tions,” 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 man-aged and its capital equipment is in excel-lent condition. We anticipate this transac-tion to be cash flow positive immediately upon closing and in line with our strategic plan to de-leverage over time. The acquisi-tion will allow us to leverage our corporate platform, and we hope to close the trans-action by January 31, 2012.”