The new customer has also been granted the right to purchase additional tons of coal each year over the life of the contract, which, if fully exercised, could yield a total of $36m of revenues to America West.
Dan Baker, CEO of America West, said: “Now that we have stabilized coal production at Horizon and are currently producing approximately 30,000 tons per month from a single mining section, we are in active negotiations with a number of new potential customers who are seeking clean compliant coal to fuel their respective energy needs.
“To that end, we are very pleased to welcome this new client to our growing customer base and look forward to further expanding the number of domestic and international companies we supply as coal production from Horizon continues to ramp up.”
Headquartered in Salt Lake City, Utah, America West Resources is a domestic coal producer focused on the mining of compliant (low-sulfur) coal and its sale primarily to the US utility companies for use in generating electricity.
