“Hidden Splendor's emergence from bankruptcy is the start of a new era for our company,” said America West chief Dan Baker.

 

“The reorganisation allowed us to optimise our cost structure and take meaningful steps towards materially enhancing our mining processes.

 

“With plans to achieve even greater operational efficiencies and coal production growth through mine expansion initiatives, coupled with growing demand for our clean coal resources, the future of America West looks very promising."

 

The company announced the re-emergence in early December, as its plan of reorganisation (POR) was confirmed by the US Bankruptcy Court for the District of Nevada.

 

The following week, America West inked a 12-month, $US7 million bituminous coal supply agreement for output from its Horizon complex with a “major, multinational producer of high calcium and dolomitic lime”.

 

Based on the Horizon mine’s expected coal production, the producer said it believes the Utah complex will give it a “sufficient” cash flow from operations to manage its other financial obligations to Hidden Splendor's creditors going forward.

 

It also has a number of other new customers it will be serving, which collectively represent as much as $40 million in potential revenues in 2009.