Westmoreland Coal Co said that it has completed its acquisition of Chevron Mining Inc.’s Kemmerer coal mine in Lincoln County, Wyo.

The purchase was for USD 76.5 million in cash, plus Douglas County-based Westmoreland is assuming about USD 118 in certain liabilities, including post retirement medical, pension, black lung, and asset retirement obligations.

Westmoreland said the mine has produced an average of 4.7 million tons of sub-bituminous coal over the past five years. The mine has about 118 million tons of coal reserves, enough for 20 years of production.

Mr Keith E Alessi president and CEO of Westmoreland said that “We are pleased to have completed this transaction and look forward to working with the customers of the Kemmerer mine. We also welcome the employees of the mine to the Westmoreland family. The Kemmerer mine is an excellent strategic acquisition for us and represents both growth and diversification for our business.”

The acquisition is being financed largely through the new offering of USD 125 million in notes due 2018 in a private placement, in addition to USD 150 million of existing 10.75% notes due 2018.

(Sourced from www.bizjournals.com)