US-based Westmoreland San Juan (WSJ) has completed the $127m acquisition of the San Juan Mine in Farmington, New Mexico, from BHP Billiton.

The San Juan Mine is adjacent to the San Juan Generating Station (SJGS).

Initially announced in May 2015, the acquisition will expand Westmoreland’s suite of mouth mining operations, in addition to offering additional coal resources of 148 million tonnes.

"The addition of the San Juan Mine further enhances our mine mouth business model, which has been fundamental in providing strong cash generation."

Westmoreland also signed an agreement for the owners of SJGS to purchase 100% of its coal from the San Juan Mine.

Under the new agreement, Westmoreland will take over operations this month.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

See Also:

The coal supply agreement will expire in 2022, but the owners of SJGS have an option to extend the agreement beyond 2022.

Westmoreland CEO Kevin Paprzycki said: "The addition of the San Juan Mine further enhances our mine mouth business model, which has been fundamental in providing strong cash generation.

"We look forward to building upon the solid partnership with the SJGS team in the years to come."

WSJ secured a $125m loan from a subsidiary of PNM Resources in order to fund a portion of the transaction.

The completion of this sale process will allow coal to be supplied to the SJGS beyond 2017.