America West Resources, a compliant coal producer with mining operations in Central Utah, has agreed to supply a west coast utility company with compliant thermal coal mined from the Horizon mine, pursuant to an eight month agreement valued at $7.4m.

Dan Baker, CEO of America West, said: “The time, expense and effort that have gone into establishing Horizon mine as a valuable source of compliant coal for the world’s power producers are yielding us tangible, positive results.

“In view of the new domestic and international coal supply contracts we’ve announced over the past several weeks, the outlook for America West’s 2010 financial performance continues to strengthen, helping to fuel a tremendous sense of pride and enthusiasm at our company.”

Headquartered in Salt Lake city, Utah, America West is a domestic coal producer focused on the mining of compliant (low-sulfur) coal and its sale primarily to US utility companies for use in generating electricity.

The company operates the Horizon mine, which has recoverable compliant coal reserves under lease of approximately 19 million tons.