The deal, the company said on Tuesday, is valued at more than $US75 million. The customer sells electricity to utility companies which serve multiple areas in the western United States.
The supply coal will begin shipping immediately from America West’s Horizon operation in Carbon County, Utah, and will be transported by train from December 2014.
The company said the customer has the option to purchase additional production over and above the contracted quantity, which could yield an additional $46 million in revenue based on pre-determined per-ton pricing.
"America West is pleased to be providing power users in the western US with a reliable, low cost supply of energy generated from our clean, compliant coal,” America West chief executive officer Dan Baker said.
In May, the producer announced another thermal supply deal with a west coast utility company. This contract lasts eight months and is worth $7.4 million.
"The time, expense and effort that have gone into establishing Horizon mine as a valuable source of compliant coal for the world's power producers are yielding us tangible, positive results,” Baker said last month.
“In view of the new domestic and international coal supply contracts we've announced over the past several weeks, the outlook for America West's 2010 financial performance continues to strengthen, helping to fuel a tremendous sense of pride and enthusiasm at our company."
The May supply deal was the company’s third to be signed in a month, though it is the first domestic transaction during that period. In late April, it signed a four-year, $200 million transaction with an undisclosed China-based energy firm.
The master coal purchase and sale agreement was based on predetermined contract pricing and is valued at $47-51 million per year for four years.
Just a week before, the producer inked a large multi-year master coal purchase and sale agreement with an undisclosed large European electricity trader.
The deal, valued at about $9.4 million, provides for America West to ship compliant coal monthly on a predetermined shipping schedule beginning in April and extending through December 2013.
