America West inks supply deal

UTAH producer America West Resources said Wednesday it will supply coal from its Horizon mine to a large, unnamed Western US power generation firm.
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Work at an America West operation. Courtesy America West Resources

Donna Schmidt

The minimum contracted value of the 12-month agreement is $US8.3 million but the deal’s true price tag would likely be higher.

“America West will also offer this agency excess production above minimum contracted tonnage, and it has agreed to use its best efforts to accept it, thereby providing America West with the opportunity to realise up to $12.45 million in additional revenue,” the producer said.

The company said earlier this week that it has commenced production from Section II of the Horizon coal complex. The room and pillar operation, which pulls from the Hiawatha seam, is now operating Sections I and II seven days a week, three shifts a day.

The seam at the Horizon mine measures approximately 7ft and has averaged 280,000 tons of coal per year in the last four years. As a multiple-section mine, the company said it anticipates output levels between 600,000t and 2 million tons annually.

The company underwent a name change from Reddi Brake Supply Corporation to America West Resources in March. Horizon is operated by its subsidiary, Hidden Splendor Resources.

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