Andalex Resources, Inc. and Intermountain Power Agency have been accepted as the successful bidder for the 1,646.34 acre Whitmore Canyon coal tract with a bonus bid of $11,459,900 announced Utah Bureau of Land Management State Director, Sally Wisely.
The Whitmore Canyon Tract is located in Carbon County, approximately four miles north of East Carbon City.
The tract, containing an estimated 14.8 million tons of recoverable high volatile B bituminous coal, is adjacent to the companies' West Ridge underground mine. The companies project the West Ridge mine to operate at a level of approximately three million tons of coal per year.
In addition to the bonus bid, the companies will pay annual rental of $4,941, and an eight percent royalty on all future coal mined from the tract. Half of the bonus bid, as well as half of all rental and royalties collected, will be transferred to the State of Utah.
Andalex Resources, Inc. and Intermountain Power Agency were the only companies to submit a sealed bid at the Dec. 12, coal lease sale held in Salt Lake City.