It is reported that Westmoreland Coal Co plans to pay about USD 74 million in cash and assume roughly USD 118 million in liabilities to purchase a Wyoming coal mine from a Chevron Corp.

The deal comes after Chevron said in January it would be getting out of the coal industry and was seeking a buyer for the Wyoming mine. A spokeswoman said at the time that new coal technologies are too far off to make staying in coal a good strategy.

The purchase of the Kemmerer mine, located in the Hams Fork Region of South Western Wyoming, includes roughly 118 million tons of coal reserves, staff and mining equipment, among other items.

Mr Keith E. Alessi Westmoreland Chief Executive said "Strategically, the Kemmerer mine fits well with our existing mine mouth operations. The mine has a diversified base of stable customers, both utility and industrial.”

Under the assumption of liabilities, Westmoreland said it would take on post-retirement medical, pension black lung and asset retirement obligations.

The transaction, which has been approved by Westmoreland's board, is expected to close by the end of January.

(Sourced from www.marketwatch.com)