Westmoreland Board Approves Purchase Agreement for San Juan Mine
Westmoreland Coal Company (NasdaqGM:WLB, “Westmoreland”) announced today that its Board of Directors has taken all steps necessary to enter into the Purchase and Sale Agreement for the purchase of the San Juan Mine in Farmington, New Mexico from BHP Billiton and enter into a new long-term coal supply agreement with Public Service of New Mexico (“PNM”) and the other owners of the San Juan Generating Station (“SJGS”).
“Today’s action by the board of directors completes the final steps towards entering into the definitive purchase agreement on July 1, 2015, which coincides with finalizing our binding coal supply agreement with PNM, which will be filed with the New Mexico Public Regulation Commission by July 1,” said Keith E. Alessi, CEO of Westmoreland. “While we understand the importance and complexity of the decision, Westmoreland hopes that the Public Regulation Commission will approve PNM’s plan for SJGS so that we can move towards closing and begin our partnership with PNM in an expedient manner. As a company, we are committed to the communities we represent and, in this situation, helping to maintain the viability of the Farmington economy through the operation of the San Juan Mine.”
The acquisition, which is expected to close on December 31, 2015, contemplates a coal supply agreement through June 30, 2022. Westmoreland intends to operate the San Juan Mine through the termination of the coal supply agreement and is hopeful an extension of the coal supply agreement can be reached that will extend the life of the mine far past the 2022 time frame.
About Westmoreland Coal Company
Westmoreland Coal Company is the oldest independent coal company in the United States. Westmoreland’s coal operations include sub-bituminous and lignite surface coal mining in the Western United States and Canada, an underground bituminous coal mine in Ohio, a char production facility, and a 50% interest in an activated carbon plant. Westmoreland also owns the general partner of and a majority interest in Westmoreland Resource Partners, LP, formerly Oxford Resource Partners, LP, a publicly-traded coal master limited partnership. Its power operations include ownership of the two-unit ROVA coal-fired power plant in North Carolina. For more information, visit www.westmoreland.com.
Cautionary Note Regarding Forward-Looking Statements
This release may contain “forward-looking statements.” Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and similar references to future periods. These statements involve known and unknown risks, which may cause our actual results to differ materially from results expressed or implied by the forward-looking statements. These risks include factors such as the uncertainty of negotiations to result in an agreement or a completed transaction, the uncertain nature of the expected benefits from the actual or expected acquisition, the uncertain nature of the announced acquisition, the ability to complete such transactions, the ability to extend the coal supply agreement past 2022, risks associated with our industry or the economy generally, and other such matters discussed in the “Risk Factors” section of Westmoreland’s 2014 Annual Report on Form 10-K and subsequent quarterly reports filed on Form 10-Q.
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Contact
Investor Contact:
Westmoreland Coal Company
Kevin Paprzycki, 855-922-6463