Westmoreland Completes Acquisition of Kemmerer Mine
Westmoreland Coal Company (NasdaqGM:WLB) today announced the completion
of 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,? said Keith E. Alessi,
Westmoreland′s President and CEO. '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.?
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.
Forward-Looking Information
This press release contains 'forward-looking? statements.
Forward-looking statements reflect current expectations and projections
about future events, and thus involve uncertainty and risk. It is
possible that future events may differ from expectations due to a
variety of risks and other factors such as market conditions. It is not
possible to foresee or identify all such factors. Any forward-looking
statements in this press release are based on certain assumptions and
analyses made in light of Westmoreland′s experience and perception of
historical trends, current conditions, expected future developments, and
other factors it believes are appropriate in the circumstances.
Forward-looking statements are not a guarantee of future performance and
actual results or developments may differ materially from expectations.
Westmoreland does not intend to update any particular forward-looking
statements contained in this press release.
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. For more information, visit www.westmoreland.com.
Westmoreland Coal Company
Kevin Paprzycki, 855-922-6463