NEWS
Westmoreland Finalizes Restructuring Deal
Transforms the Company Balance Sheet and Unlocks a Range of Forward-Looking Business Initiatives in a New Enterprise Offering Sustainable Practices, Services and Products.
Denver, Colorado, May 8, 2023 – Westmoreland Mining Holdings, LLC (“Westmoreland”), announced today that it has closed on a restructuring deal with its investors that will substantially enhance the foundations of the business by right sizing the Second Lien Debt Facility to align with the Company’s long-term strategic direction. At the same time, Westmoreland will launch a new enterprise called “WestMET” or more appropriately, Westmoreland Minerals, Energy and Technology.
Forged from innovative ideas and concepts that were ‘hiding in plain sight’ within the traditional asset base of Westmoreland, WestMET encapsulates an exciting portfolio of sustainable products and services that will meet the needs and wants of the world today and in the future.
By harvesting the latent value existing in and around former mining hubs and grid connections, WestMET will emerge with three core business segments, including a unique agriculture operation developed from one of the foremost humalite deposits in North America, an advanced skills and technology platform focused on large scale reclamation and Earth Restoration Services (“ERS”), and a Renewable Energy incubator with the potential to optimize the highly prized real estate surrounding coveted grid interconnectors with new forms of power generation that will serve to galvanize the current energy transition.
“After an extended period of negotiations, planning, and hard work, I am thrilled to announce the successful closing of this pivotal restructuring deal with our investors. This move reinforces the strong alignment between all our stakeholders to ensure that our business adapts and evolves to the meet the challenges and opportunities that now face our industry,” said Westmoreland Chief Executive Officer Martin Purvis.
“For Westmoreland to have both the window of opportunity and ability to create a transformational new enterprise – while improving our balance sheet – is a noteworthy achievement for one of North America’s oldest mining companies.”
“This is without doubt a compelling and timely transaction for our business” said Heath Hill, Westmoreland’s Chief Financial Officer. “Crossing the finishing line with our investors on what has been a relatively complex transaction really sets Westmoreland up for the future. This deal substantially enhances our creditworthiness and provides us with the financial flexibility to respond to shifting market forces and emerging growth opportunities that align with our robust skills, long-standing relationships, and unique asset base. We are very grateful for the continued support of our investors and excited about the path ahead for both companies.”
While the two companies will emerge as separate entities with independent boards and leadership teams, Westmoreland will continue to provide as-needed back office and management resources for WestMET for the next 18 months, through a Shared Services Agreement.
Jeffrey Kukura, Westmoreland’s Senior Vice President for Organizational Transformation over the past two years, will transfer to WestMET after closing and take the lead in the future development of the new business.
“The new WestMET team is already in place and well equipped with the experience and skills necessary to unlock the potential that continues to emerge as we develop these new business sectors and opportunities. There is no doubt that this enterprise is being formed at a time when sustainable products and services are at the forefront of investment decisions and WestMET ticks all the right boxes in this regard,” Kukura said.
For more information, please contact Jon Heroux, Corporate Counsel for External Affairs at (720) 273-9265 or via email at JHeroux@Westmoreland.com.
The End of an Era at San Juan
A tribute to the people and communities that forged a bedrock of reliable power in New Mexico for Five Decades.
Waterflow, New Mexico, September 13, 2022 – Westmoreland San Juan Mining LLC announced today that its underground crews have mined the last ton of coal destined for the San Juan Generating Station located in San Juan County, New Mexico.
Beginning as a surface mining operation in 1973 when Unit 1 of the San Juan Generating Station came online, the San Juan and La Plata mines have been the sole supplier of coal to the San Juan Generating Station for nearly five decades. At its peak, the four units of the San Juan Generating Station produced 1,848 megawatts of electricity for millions of households and countless businesses across New Mexico, Arizona, California, and Utah.
Eventually transitioning to an underground operation with a longwall mining system, San Juan mine has been “home” to thousands of employees over the years and has played a transformational role in the prosperity and commercial development of the surrounding communities. According to Martin Purvis, Westmoreland’s CEO, the discussion is no longer about policy debates surrounding the generating station and mine, but about finally saying: “Thank you.” “Ignoring all the rights, wrongs, and arguments about the premature closure of this amazing facility, we as a company want to make sure that we say thank you to the men, women and communities that have worked together so effectively over the years to make this mine and generating station a bedrock of power supply in the Southwestern United States,” says Purvis.
Steve Pierro, the mine’s General Manager is one of those people. Pierro, who is retiring after 40 plus years in mining to spend more time with his wife, eight children, and 33 grandchildren, agrees and reflects fondly back on the mine’s performance as well as his time there. “It’s hard to see the mine close,” he says, “but as I look back on all we accomplished and all the incredible people I’ve had a chance to work with, I can’t help but be extremely proud of our outstanding track record at this operation. We have put a lot of people from all walks of life to work. We have injected millions of dollars back into the local economy – as well as millions of dollars to local and national charities. We have provided countless educational and training opportunities to our workers so they could improve their lives and those of their families. And, to top it all off, we have had one of the top safety and compliance records in North America. That’s really something to be proud of.”
But as Pierro points out, none of that would have ever been possible without one key element – that is, people. “I think it’s important to remember that we are a very diverse community of people who came here and made this mine and power plant work . . . from young people coming to us from the Navajo Nation who were just starting out, to experienced longwall operators, to foreman and supervisors, to engineers and environmental technicians, to the hundreds of vendors and suppliers from this community and across the globe. We need to remember that all of them have had an important role in powering the economic development of the Western United States over the past 50 years.”
James Pile, an Engineer who came to San Juan from the United Kingdom, agrees with Pierro’s sentiment but has a slightly different focus – his own quality of life and that of his family. “I can’t tell you enough how truly grateful I am to this mine,” says Pile. “In the 24 years I have been here, it has given me and my family financial and educational opportunities as well as a standard of living well above the one we could have expected had we stayed in the UK.”
Emma Curley has been with the mine for 29 years. Emma started out as a novice long-haul truck driver for the company. Today, the mother of one who grew up on the Navajo reservation is an experienced mining supervisor. I’m very proud of my career and position here at San Juan. But, you know, I am also a member of the Fire and Rescue Team. I have an EMT certification. I can take that with me almost anywhere and find a job . . . but, more importantly, it enables me to serve my community. That really means a lot to me,” says Curley. Asked if she will miss her work and her colleagues, Curley replies, “Nowhere else would I have had access to the advanced opportunities, growth, and financial stability to take care of my family. So, yes, it’s hard to move on. But I’m very thankful for the San Juan mine and all my coworkers here – they’ve given me far more than I could’ve ever hoped for.”
Jeffrey Kukura, who served as San Juan’s General Manager before becoming Senior Vice President for Technical Services for the company in its Denver office, agrees with Pile, Curley, and Pierro. But he goes one step further. “They’re heroes, without any doubt in my mind at all,” he exclaims with pride. “It’s really true, this mine and our miners really have been the heroes of this community and our nation,” he says. “The quality of life we enjoy today would not and could not have been possible without them and a lot of people like them.”
Mr. Kukura fondly points to one accomplishment of his miners at San Juan to prove his point. “You know, at one point,” he says, “men and women just like James and Emma mined more than 1 million tons of coal in one month from a single longwall face. This is an outstanding achievement by any measure and yard stick within the international mining community. The country needed the power and our folks produced. Imagine if they hadn’t stepped up and made that happen. That’s why, in my mind, they’re the unsung heroes of story.”
For more information, please contact Jon Heroux, Corporate Counsel for External Affairs at (720) 273-9265 or via email at JHeroux@Westmoreland.com.
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