(Source: Business Wire)
Foundation Coal Holdings, Inc. (NYSE:FCL) announced today that it has completed an asset exchange with various subsidiaries of Massey Energy Company. In the transaction which was designed to optimize the reserve bases of both companies, Foundation has created a contiguous reserve in the Harts Creek/Atenville area through the acquisition of approximately 19 million tons, increasing the total reserve block to more than 120 million tons of high quality steam and metallurgical grade coal. In exchange, Foundation conveyed to Massey approximately 23 million tons of coal reserves and the operating assets of the idled Laurel Creek Mining Complex in Mingo County, WV, including a coal processing plant, a permitted impoundment, permitted surface reserves, idled underground mines, and related mining equipment.
"We are pleased to announce this transaction, which improves the reserve position of both companies and provides Foundation enhanced growth potential in Central Appalachia," said James F. Roberts, Chairman and Chief Executive Officer. "Harts Creek represents one of the largest contiguous, undeveloped reserves in the region and will provide a significant growth opportunity for the company following the completion of our pending merger with Alpha Natural Resources."
About Foundation
Foundation Coal Holdings, Inc., through its affiliates, is a major U.S. coal producer operating mines and associated processing and loading facilities in Pennsylvania, West Virginia, and Wyoming. Through its subsidiaries Foundation Coal employs approximately 3,000 people and produces approximately 70 million tons of coal annually, largely for utilities generating electricity. Foundation's corporate offices are in Linthicum Heights, Md.
FORWARD-LOOKING STATEMENTS
Certain statements relating to the future prospects, developments, business strategies, analyses and other information that is based on forecasts of future results and estimates of amounts not yet determinable are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) which can be identified as any statement that does not relate strictly to historical or current facts. The company has used the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project" and similar terms and phrases, including references to assumptions, to identify forward-looking statements.
