“We had planned to resume construction in mid-2011, but the strong market demand for Tygart No. 1’s metallurgical coal product, and growing evidence of improving thermal coal pricing, led us to accelerate the project,” said Ben Hatfield, CEO and president, ICG. “The construction and development timeline anticipates initial coal production in late 2011 and longwall startup in early 2014.”
The company expects to finance the Tygart No. 1 mine construction through operating cash flow. Development capital requirements are estimated at $325 million, including $18 million spent prior to 2010. As a result of resuming construction at Tygart No. 1, the company now expects 2010 capital expenditures to increase by $15 million to a range of $105 million to $115 million.
At full output, the Tygart No. 1 mine is expected to produce 3.5 million tons per year of premium high-volatile metallurgical and high-quality thermal coal. The mine complex is projected to create more than 300 direct jobs in the Taylor County, West Virginia area.