America West Resources Inc., an established mid-sized regional coal mining company, works to extract thermal coal for electricity generating plants primarily in the western US. The company currently operates a thermal coal mine in central Utah and has initiated plans for a metallurgical grade coal mine nearby.

The company’s thermal coal mine has been in operations since 2003 and has proven reserves for the foreseeable future. It continues to add electric utility customers and expects production to be able to fill these contracts for some time to come. Its most recent contract is valued at $6.6 million with a California utility. This same contract calls for options to purchase additional coal at contract rates through the end of 2009. According to the company, all that is needed now for a successful completion of the contract, through the end of 2009, is to keep the mine operating at peak efficiency. If completed to its full potential, the entire contract (including a previous contract with the utility) could see $32 million in revenue for the company by the end of 2009.

America West is not standing on its recent successes. It has acquired rights to a nearby leasehold where testing indicates potential for an estimated 50 million tones of in-ground coal. Obtained from C&P Resources, the lease and option to purchase agreement covers 5,200 acres of undeveloped metallurgical coal resources. This higher grade coal meets all environmental requirements and is primarily used in the steel coking process. Pending development, the company has hopes for production at this site to begin in 2011. The present economy not withstanding, America West Resources has a solid portfolio of assets to be mined (as it were.) The west’s growing need for reliable sources of electricity does appear to be a need for the longer term future regardless of calls for alternative sources of energy. America West is in place with the resources and position to capitalize.