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Westmoreland buys Kemmerer for $76M

WESTMORELAND Coal has completed the acquisition of Chevron Mining’s Kemmerer coal mine in Wyoming for $US76.5 million.

Lauren Barrett
Westmoreland buys Kemmerer for $76M

The sale includes the assumption of $118 million in liabilities, including post-retirement medical, pension, black lung, and asset retirement obligation liabilities.

Over the last five years Kemmerer has produced an average of 4.8 million tons of high-quality sub-bituminous coal for sale to the adjacent Naughton power station.

Westmoreland said the transaction included approximately 118 million tons of coal reserves as of December 31, 2011, enough for 20 years of production.

Substantially all of Kemmerer’s projected production for 2012 through 2016 is committed and priced under existing sales contracts.

Westmoreland president Keith Alessi said the purchase of Kemmerer represented a new chapter for the company.

“The Kemmerer mine is an excellent strategic acquisition for us and represents both growth and diversification for our business,” he said.

“We are pleased to have completed this transaction and look forward to working with the customers of the Kemmerer mine.”

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