Massey Energy Co. announced that it has completed an additional acquisition of metallurgical and steam coal reserves from the now bankrupt Appalachian Fuels, LLC and its affiliates. The reserves, located in Barbour County, W.Va., consist of approximately 15 million tons of high volatile coal. In addition to the coal reserves, Massey also acquired various permits which will assist with establishing the infrastructure required to begin production on the property. The transaction was completed on November 13, 2009.
“We continue to execute a strategy to acquire high quality coal reserves in Appalachia and add to our dominant reserve share,” said Massey’s President, Baxter F. Phillips Jr. “We are pleased to have a strong balance sheet which enables us to continue making opportunistic acquisitions, even during a time in which market conditions are challenging. In particular, we are excited about adding coal reserves in Northern Appalachia to our growing portfolio. We expect the value of these reserves to increase significantly as conditions in the metallurgical coal market improve.”
