As part of the company’s efforts to continue developing high quality reserves that will increase metallurgical coal production, the company has begun the construction of a 700 tons per hour processing plant featuring two (2) 10,000 ton clean coal silos and a 25,000 ton raw coal stockpile area.
The estimated cost is $65m and is included in 2010 and 2011 CAPEX guidance.
The plant is expected to be completed in the third quarter of 2011 and will initially process high quality, low-vol metallurgical coal from the company’s Guyandotte operation and currently being developed Sewell seam.
In 2012, the plant will also process coal from two underground miner sections operating in a 45 million ton reserve base that is contiguous to Guyandotte.
Massey Energy chairman and CEO Don Blankenship said that the addition of the company’s new Pineville Processing plant will enhance its position as a leading supplier of quality met coal.
