Westmoreland Coal (NasdaqGM: WLB), through its newly-acquired Prairie Mines & Royalty ULC subsidiary, has entered into a long-term coal supply agreement with Saskatchewan Power to supply coal from the Estevan Mine.
The agreement results in a commitment of over 60 million tons of coal from Estevan through 2024.
“I am very pleased to announce that we have entered into an agreement with SaskPower to extend the supply of coal from our Estevan Mine,” said Westmoreland CEO Keith Alessi in a July 29 statement. “We are pleased with the cooperative nature in which SaskPower approached our first negotiation as the owner of the Estevan and Poplar mines, and feel the negotiations are a starting point for us to demonstrate to SaskPower our core value of exceeding our partners’ expectations through a collaborative approach.”
The Estevan Mine is located in southeastern Saskatchewan between the city of Estevan and the town of Bienfait. It has four active pits and supplies lignite to the Boundary Dam Generating Station, the Shand Generating Station, an activated carbon plant, a char plant, and also makes some other sales. The power plants are owned and operated by Saskatchewan Power.
Colorado-based Westmoreland Coal is the oldest independent coal company in the United States. The company’s coal operations include sub-bituminous and lignite coal mining in the Western United States and Canada. Its power operations include ownership of the two-unit ROVA coal-fired power plant in North Carolina.