The contemplated new coal supply agreement states that Westmoreland will take over operations at the beginning of 2016.
The new coal supply agreement expires in 2022, but SJGS owners can extend the agreement beyond 2022, to coincide with the SJGS owners’ plans for operation of the plant after 2022.
The new coal supply agreement and the agreement in principal for Westmoreland to purchase San Juan Mine will not be final or binding until all parties have secured internal approvals.
Westmoreland Coal CEO Keith E. Alessi said: "Westmoreland is delighted to establish a new relationship with the San Juan Generating Station.
"We look forward to working with the ownership of San Juan and BHP Billiton in assuring a smooth transition on or about January 1, 2016.
The San Juan mine is a well-run operation with an excellent workforce that fits extremely well with our mine mouth, contracted business model. We look forward to welcoming the International Union of Operating Engineers workforce along with all San Juan Coal Company employees into the Westmoreland family and are certain that they will embrace our culture of safe production."
