The supply agreement provides for compliant thermal coal mined from America West’s Horizon Mine in Carbon County, Utah, to begin shipping immediately, with follow-on coal trains running through the end of December 2014.

In addition, the customer has the right to purchase additional coal production over and above the contracted base quantities. Based on pre-determined pricing per ton, the additional tonnage could yield up to another $46m in revenue to the company over the contracted supply period.

Dan Baker, CEO of America West, said: “America West is pleased to be providing power users in the Western US with a reliable, low cost supply of energy generated from our clean, compliant coal.

“We’re very proud of our major new customer wins and the tremendous progress we continue to make towards establishing America West as a preferred global source for high quality thermal coal.”