Small cap coal producer, America West Resources (OTC:AWSR) has inked a four year deal to supply thermal coal mined from its Horizon operation in Utah to customers in China.
The agreement, valued at between US$47-51 million per annum, follows hot on the heels of the company’s confirmation that it had leased coal storage and export terminal space at a port on the western seaboard of the United States.
"We are very pleased that global demand for our compliant coal has been increasingly robust. In view of the number of new coal supply contracts we have signed or are currently negotiating, America West is working diligently towards re-establishing mining operations in two pillar sections at Horizon, with a goal of expanding to three sections by the end of this year and significantly increasing production," stated Dan Baker, America West's CEO.
America West added that it expects to commence rail shipments of coal to the export terminal ‘immediately’ with subsequent shipments to China expected to begin in June.
America West Resources is focused on the mining of low-sulphur coal to utility companies for power generation. The Horizon Mine has recoverable compliant coal reserves under lease of approximately 19 million tons.