Massey Energy to Expand Metallurgical Coal Production
Tuesday, October 30th, 2007
Following strong operating performance and financial results in the first nine months of the year, Massey Energy Company announce plans to aggressively expand production at its Central Appalachian coal mining operations during the next two years.
“This is a very exciting time for Massey Energy Company,” stated Don L. Blankenship, Massey’s Chairman and Chief Executive Officer. “We have the capital, resources and market position to execute our strategic plans for growth. With a large portfolio of idle reserves, we have abundant opportunities to expand low-cost production. We expect to be able to take further advantage of current strong metallurgical coal prices and expected favorable long-term utility coal fundamentals to earn attractive margins and high returns on these investments.”
Currently the Company has double the regional market share of its closest competitor and anticipates increasing its market share going forward.
Massey’s two-year internal expansion and cost reduction plan anticipates developing net additional annual production of 8 million tons in 2010 versus 2007, with the ramp up occurring during 2008/2009. Additionally, these new tons will be weighted towards high value and more profitable metallurgical coal production and which the Company believes will be cost advantaged versus existing comparable quality competitor mines. Massey stated that it expects to fund all of its expansion projects out of existing liquidity and 2008/2009 operating cash flow.
For further information visit: www.masseyenergyco.com