Massey secured the rights to the reserves through an auction held in the bankruptcy of Kentucky-based Appalachian Fuels. The acquisition was announced last month and completed on 13 November 2009. A company representative has said that Massey paid over US$6 million for the property.
The reserves, which are located in Barbour County, West Virginia, consist of some 15 million t of high volatile coal. The company has also acquired the permits needed to develop infrastructure at the site Dante Coal Reserves ensuring that production can commence. According to Massey, the acquisition brings the company’s total coal reserves to 2.3 billion t.
Massey President Baxter Phillips Jr. offered the following on completion of the acquisition; ‘we continue to execute a strategy to acquire high quality coal reserves in Appalachia and add to our dominant reserve share. 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 the reserves to increase significantly, as conditions in the metallurgical coal market improve.’
Massey Energy Company, which has operations in West Virginia, Kentucky and Virginia, is the largest coal company in Central Appalachia. It has a long history of making successful acquisitions of coal mining assets and reserves. The Company has increased its total coal reserves from 767 million t in 1987 to more than 2.3 billion t today. Of the total current reserves, 1 billion t have metallurgical qualities and characteristics; thereby making Massey the largest holder of metallurgical coal reserves in the US.
The acquisition is Massey's second from Appalachian Fuels LLC¬. In September, Massey bought 23 million t of reserves and other assets in West Virginia's Fayette County from the company, for US$5.1 million.
Read the article online at: https://www.worldcement.com/the-americas/19112009/massey_energy_completes_15_million_t_acquisition/