Mining Industry: America West Resources Inks China Coal Supply Agreement

(Comment on this article at http://www.financialwire.net/2010/04/30/mining-industry-america-west-resources-inks-china-coal-supply-agreement/)

April 30, 2010 (FinancialWire) -- America West Resources, Inc. AWSR, a coal producer with mining operations in Central Utah, said that it has signed a master coal purchase and sale agreement with a China-based energy group, providing for the company to ship compliant thermal coal mined from its Horizon Mine in Carbon County, Utah to customers in China.

Based on predetermined contract pricing, the four-year agreement is valued between $47 million and $51 million per year, according to America West Resources.

Earlier this week, America West said that it has leased a coal storage and export terminal at a seaport based in the northwestern region of the U.S. in anticipation of supplying coal to China-based power companies and other industrial users of thermal coal in the Asian markets.

Under the new agreement, the company said it expects to begin rail shipments of coal to the newly leased export terminal immediately with subsequent shipments to China expected to begin in June.

Utah-based America West Resources is focused on the mining of compliant coal and its sale primarily to U.S. utility companies for use in generating electricity. The company operates the Horizon Mine.

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