Westmoreland Coal (NasdaqGM: WLB) announced Dec. 9 that it has entered into a Coal Services Agreement with Trafigura AG under which Trafigura will exclusively market certain tons of export thermal coal from Westmoreland’s newly-acquired Coal Valley Mine in Alberta, Canada.
Keith E. Alessi, Westmoreland’s CEO, said: “We have partnered with Trafigura, an internationally known and respected trading organization, to represent us as we service existing and new export markets with thermal coal from our Coal Valley Mine. By leveraging Trafigura’s marketing expertise, we can focus on what we do best, efficiently mining thermal coal.”
Simon Collins, Trafigura’s Head of Metals and Minerals Trading, said: “Bringing together the deep resources and coal mining expertise of Westmoreland Coal Company and the global trading and marketing skills of Trafigura creates a winning combination. It will also further enhance Trafigura’s ability to supply its growing number of coal clients around the world and continue the growth that has placed the company among the top three global coal traders.”
Westmoreland’s coal operations include sub-bituminous and lignite coal mining in the Western United States and Canada, a char production facility, and a 50% interest in an activated carbon plant. Coal Valley was the only export-oriented mine that the company got earlier this year in a buy of Sherritt‘s western Canada coal mines.
Founded in 1993, the Trafigura Group has become one of the world’s leading independent commodity traders, specializing in the oil, minerals and metals markets. Primary trading activities are the supply and transport of oil and petroleum products and metals and minerals.