Under the agreement, Westmoreland Resources will provide TransAlta Centralia Generation with coal up to 2.0 million tons per year to 2024, and up to 1.2 million tons in 2025 from Absaloka mine.

Westmoreland Coal Company president and chief executive officer Robert King said the contract provides long-term relationship for the Absaloka mine that expands Westmoreland’s production going forward and generates value for both the company and The Crow Tribe.

"We are very pleased to announce that we have entered into this agreement with TransAlta to supply the Centralia Plant and look forward to a long and beneficial relationship," King added.

The coal will be transported through the newly constructed western wye railroad trackage, which allows western movements of coal from the Absaloka mine.