RICHMOND, Va., July 16 /PRNewswire-FirstCall/ -- Massey Energy Company (NYSE: MEE) announced today that it has completed a reserve exchange with various subsidiaries of Foundation Coal Holdings, Inc., through which it has acquired approximately 23 million tons of strategically located coal reserves and the operating assets associated with Foundation's idle Laurel Creek Operation in Mingo County, WV. The acquired coal reserves and operating assets are located directly adjacent to Massey's existing North Surface Mine and near Massey's Feats rail loadout facility. Importantly, the transaction includes a coal processing plant, a permitted impoundment, permitted surface reserves, idled underground mines, and related mining equipment.
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"We are excited about this transaction and the synergies and development opportunities it provides," said Don Blankenship, Massey's CEO and Chairman. "The addition of a permitted processing plant and impoundment in this area will enable us to more economically mine over 100 million tons of Massey controlled reserves and further enhances our position in Central Appalachia."
In the exchange, Massey conveyed to Foundation approximately 19 million tons of nonstrategic coal reserves, and assumed certain reclamation liabilities and coal sales obligations.
Company Description
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 a part of 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
