U.S.-based Walter Energy on Tuesday said it would name Vancouver-based Western Coal's CEO Keith Calder as the head of Walter Energy when a $3.3-billion merger with the Canadian company is complete.
The deal -- which includes Western Coal's extensive coal operations in Northern B.C. -- is expected to be complete by April 1.
Calder would succeed Walter Energy interim CEO Joe Leonard, who will continue as interim CEO through the closing and also as a member of the board of directors.
"Keith Calder has done an outstanding job in a very short period of time delivering tremendous value to shareholders of Western Coal. Our expectation is that he will continue this track record in his new role as chief executive officer of Walter Energy," said Walter Energy Chairman Michael T. Tokarz.
Calder said he was thrilled at the opportunity.
"Our combined company, with Western Coal's growth prospects and Walter Energy's premium coking coal and excellent track record of financial performance, has a very bright future ahead of it," he said.
Prior to joining Western Coal, Calder served as managing director of Rio Tinto's Copper Projects where he had overall responsibility for more than $20 billion in capital expenditures. He managed a globally diverse team of more than 400 professionals and 2,000 staff and contractors.
Western Coal produces about two thirds of its coal in northeastern B.C., where it employs more than 900 people, about 50 of those who live in Prince George.
The two companies have said the larger company would be in an excellent position to use its metallurgical coal-growth capacity to capitalize on an expected 50 per cent growth in steel manufacturing in the next decade. Increased demand is largely being driven by China, India and Brazil.
While Western Coal has markets in Japan, Korea and China, via the Port of Prince Rupert, Walter Energy exports coal to South America and Europe.
Western Coal started work in the Tumbler Ridge area, 175 kilometres northeast of Prince George five years ago, in an effort to tap into a surge in world coal demand by taking advantage of already proven coal resources in northeastern B.C., using excess railway and port capacity at Prince Rupert.
All the coal travels through Prince George, considered a service centre for the northern B.C. mining sector.
