It is reported that Westmoreland Coal Company has agreed to purchase Chevron Mining Kemmerer mine in the Hams Fork Region of southwestern Wyoming in US for USD 179 million plus approximately USD 14 million in working capital.

The purchase price is expected to be funded through a combination of cash consideration of approximately USD 74 million plus the assumption of approximately USD 118 million in certain liabilities.

The transaction includes approximately 118 million tons of coal reserves as of December 31 enough for 20 years of production.

Additionally, substantially all of Kemmerer's projected production for 2012-16 is committed and priced under existing sales contracts.

Over the past five years, Kemmerer has produced, on average, 4.7 million tons of sub bituminous coal for sale to the adjacent Naughton power station, as well as various industrial customers.

The transaction is expected to close by January 31 of this year, subject to certain customary conditions and approvals.

(Sourced from coal.energy-business-review.com)