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The Wildcat loadout facility near Helper, Utah, about two hours from Salt Lake City, had been inactive since 2010 but was put back online by America West last month.
Wildcat, utilizing a batch load-out system, has commenced processing Horizon’s high quality thermal coal and is shipping it via direct rail access on Union Pacific Railroad and Utah Railroad to western US customers.
The company also confirmed that Wildcat is actively screening and sorting Horizon’s lump and stoker coal to then be sold to both individuals and resellers in Utah and the surrounding states, creating what it called a new and high-margin revenue stream. The facility may also pick up coal production from other operations in the state in the near future, as its capacity is 5 million tons per annum with room for up to 110-car trains.
"Through the vertical integration of the Wildcat loadout facility into our operating platform, America West will achieve a significant reduction in our coal trucking and transportation costs, dropping as much as two-thirds of the cost we were previously paying per load,” president and chief executive officer Dan Baker said.
“Moreover, Wildcat gives us the opportunity to capitalize on entirely new business development channels within the coal supply chain, thus enhancing our revenue and earnings growth on a moving forward basis."
America West announced the start of full production at Horizon in late May, the culmination of three years of planning and development efforts. During its preparation, crews created five tunnels at the 1640-acre leasehold in Carbon County, each with a width of 20 feet and extending more than three miles to the active sections.
Electrical infrastructure was also installed during that time, as was a water supply and shuttle car and conveyor belt systems.
Horizon, which holds an estimated resource of 16 million recoverable tons of thermal coal, had produced about 1.6Mt as of late May. The 60,000tpm average production goal will be reached at prime levels with two continuous miners in operation.
The mine’s long-term expansion goals include the acquisition and installation of a longwall mining system, pending the receipt of necessary financing.
