Westmoreland Completes Acquisition of Kemmerer Coal Mine in Wyoming
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Westmoreland Coal Company has completed the acquisition of Chevron Mining Inc.’s Kemmerer coal mine in Lincoln County, Wyoming. Total consideration for the purchase of the Kemmerer mine included a cash payment of $76.5 million and the assumption of approximately $118.0 million in certain liabilities, including post retirement medical, pension, black lung, and asset retirement obligation liabilities.
“We are pleased to have completed this transaction and look forward to working with the customers of the Kemmerer mine. We also welcome the employees of the mine to the Westmoreland family. The Kemmerer mine is an excellent strategic acquisition for us and represents both growth and diversification for our business,” said Keith E. Alessi, Westmoreland’s president and CEO.
Over the last five years, Kemmerer has produced, on average, 4.8 million tons of high-quality sub-bituminous coal for sale to the adjacent Naughton power station, as well as various industrial customers located in the proximate geographic region. The transaction includes approximately 118 million tons of coal reserves as of December 31, 2011, 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.
About Westmoreland Coal Company
Westmoreland Coal Company is the oldest independent coal company in the United States. The company’s coal operations include coal mining in the Powder River Basin in Montana, sub-bituminous mining in Wyoming, and lignite mining operations in Montana, North Dakota and Texas. Its power operations include ownership of the two-unit ROVA coal-fired power plant in North Carolina.
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