RICHMOND, Va., June 20 /PRNewswire-FirstCall/ -- Massey Energy Company today reported that it acquired, through a bankruptcy sale process, the primary assets of Great Western Coal, Inc., located in Harlan County, Kentucky. The Company paid approximately $2.1 million in cash, plus the assumption of related property reclamation liabilities of approximately $2.7 million. The assets acquired include an estimated 14 million tons of high quality, low sulfur utility and industrial coal reserves and related infrastructure, including an active surface mine and rail loading facility. In addition, Massey purchased the related mining equipment for a total of $1.85 million.
"This acquisition allows us to expand our reach into a portion of Central Appalachia where we currently don't have a strong presence," said Don L. Blankenship, Massey Chairman and CEO. The Company reported that it plans to continue surface production and review other possible future expansion opportunities. Annual production from the existing surface mine is estimated at between 200,000 and 300,000 tons.
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.
FORWARD-LOOKING STATEMENTS: The foregoing release contains forward- looking statements. Such forward-looking statements reflect current analysis of existing information. Caution must be exercised in relying on forward- looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements can be found in press releases as well as Massey's public periodic filings with the Securities and Exchange Commission, including Massey's Annual Report on Form 10-K and subsequently filed interim reports. Such filings are available either publicly or upon request from Massey's Investor Relations Department: (866) 814-6512. Massey disclaims any intent or obligation to update its forward-looking statements. For further information, please call Massey Investor Relations (Katharine W. Kenny, 804-788-1824) or contact the Company via its website at http://www.masseyenergyco.com/.