Massey Energy Acquires Synergistic Coal Reserves and Deep Mine Permit
Thursday, August 9th, 2007
Massey Energy Company announce that it has acquired certain assets from Peachtree Ridge Mining Company, Inc. and substantially all of the assets of Belle Coal Company, Inc. including approximately 15 million tons of leased coal reserves and a deep mine permit in Clay and Nicholas Counties, WV. The reserves are located near Massey’s existing Nicholas Energy and Mammoth resource groups which would allow coal mined in the acquired reserves to be processed and transported primarily through existing infrastructure. Terms of the transaction include current and deferred cash consideration of $2.75 million and the assumption of minimal reclamation liabilities associated with the deep mine permit.
Massey does not plan to initiate production at this operation in the short term, but could activate the mine quickly if attractive market opportunities become available.
“This acquisition is representative of our strategy for opportunistic acquisitions in Central Appalachia,” stated Don L. Blankenship, Massey’s Chairman, President and CEO. “We are well positioned to make additional strategic and synergistic acquisitions and anticipate additional opportunities to do so going forward.”