March 28, 2017 - Westmoreland Coal Company today announced that Capital Power, Westmoreland’s joint-venture partner in the Genesee Mine, has paid Westmoreland $52 million, representing an accelerated repayment of all receivables that would otherwise have been due with respect to capital expenditures during the term of the joint venture arrangement.

“The early repayment of this receivable is a positive for us. We have the opportunity to deploy this cash strategically as part of our goal to improve liquidity and lower our leverage, and it provides greater protection with respect to the risks presented by Alberta’s recent decisions regarding coal use. With this payment, we have fully recovered our capital investments at the mine,” said Kevin Paprzycki, Westmoreland’s Chief Executive Officer.

In operating the Genesee Mine, Westmoreland initially made 50% of the capital expenditures and was subsequently reimbursed over time by Capital Power. Westmoreland also charges a contract mining fee to run the operations. While the receivable for capital expenditures has been paid in full early, Westmoreland will continue to receive the contract mining fees of between $2 million to $3 million annually until the projected termination of operations at the mine in 2030. Going forward, Capital Power will be solely responsible for capital expenditures at the mine. 

Westmoreland Coal Company is the oldest independent coal company in the United States. Westmoreland’s coal operations include surface coal mines in the United States and Canada, underground coal mines in Ohio and New Mexico, a char production facility, and a 50% interest in an activated carbon plant. Westmoreland also owns the general partner of and a majority interest in Westmoreland Resource Partners, LP, a publicly-traded coal master limited partnership (NYSE:WMLP). Its power operations include ownership of the two-unit ROVA coal-fired power plant in North Carolina.