RICHMOND, Va., Nov. 17 /PRNewswire-FirstCall/ -- Massey Energy Company
(NYSE: MEE) announced today that it has completed the acquisition of various
coal assets from The Brink's Company (NYSE: BCO) including more than 14.4
million tons of proven high quality coal reserves. The acquired coal reserves
are strategically located adjacent to Massey's Knox Creek, Bandmill and Logan
County mining operations in Central Appalachia and, as a result, will provide
significant cost advantages for Massey when they are developed.
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'We continue to execute our 'Position to Win' strategy in Central
Appalachia by controlling a dominant share of the most valuable coal reserves
in the country,' said Don Blankenship, Massey's Chairman and CEO. 'This
transaction extends the advantage we hold over our competitors in terms of
total reserve tons and reserve quality and will likely lead to additional cost
advantages as well.'
In addition to the completed transaction, Massey has agreed in principle
to acquire an additional 32.0 million tons of coal reserves from The Brink's
company pending the satisfaction of certain conditions. In total, Massey
expects to acquire approximately 36.4 million tons of coal reserves for cash
consideration of $10 million and the assumption of approximately $5 million in
related leasehold and reclamation liabilities.
Massey Energy Company is the largest coal producer in Central Appalachia
and has a total of 2.3 billion tons of proven and probable coal reserves.
Massey Energy Company, headquartered in Richmond, Virginia, with
operations in West Virginia, Kentucky and Virginia, is the fourth largest coal
company in the United States based on produced coal revenue and is included in
the Standard & Poor's 500 Index.
Forward Looking Statements
Statements in this press release relating to future events and other
disclosures and statements that are not historical facts are forward-looking
statements (as defined under the Private Securities Litigation Reform Act of
1995) that involve risks and uncertainties. Caution must be exercised in
relying on these forward-looking statements as actual results may differ
materially from these forward-looking statements, which are based on our then
current expectations as a result of market conditions, the actions by third
parties, and many other factors. For a discussion of such risks and
uncertainties related to Massey, which could cause actual results to differ
from those contained in the forward-looking statements, see Massey's earnings
releases and see 'Risk Factors' in Massey's most recent Annual Report on Form
10-K and subsequently filed interim reports. Such filings are available at
Massey's website www.masseyenergyco.com or upon request from Massey's Investor
Relations Department at 866-814-6512. Massey disclaims any intention or
obligation to update any forward-looking statements whether as a result of new
information, future developments, or otherwise.
SOURCE Massey Energy Company