October 12, 2008

Massey to export more coal on steel growth

Coal producer Massey Energy Co announced that it was spending USD 480 million to expand its Central Appalachian mines so it can export more and take advantage of increasing demand from the global steel industry.

Massey's two year internal expansion and cost reduction plan anticipates developing net additional annual production of 8 million tons in 2010 versus 2007, with the ramp up occurring during 2008 and 2009. Additionally, these new tons will be weighted towards high value and more profitable metallurgical coal production and which the Company believes will be cost advantaged versus existing comparable quality competitor mines. Massey stated that it expects to fund all of its expansion projects out of existing liquidity and 2008 2009 operating cash flow.

Mr Don Blankenship chairman & CEO of Massey Energy said that "This is a very exciting time for Massey. We have the capital, resources and market position to execute our strategic plans for growth. With a large portfolio of idle reserves, we have abundant opportunities to expand low-cost production. We expect to be able to take further advantage of current strong metallurgical coal prices and expected favorable long-term utility coal fundamentals to earn attractive margins and high returns on these investments."

Massey Energy Company headquartered at Richmond in Virginia with operations in West Virginia, Kentucky and Virginia, is the fourth largest coal company in the United States based on produced coal revenue.