The company said the increase in production will be due to the purchase of larger capacity equipment. RAC recently purchased one Komatsu dozer D475A, one Komatsu PC 1800 excavator; and two Komatsu 875 100 ton rock trucks for over $1.6m.

According to the company, this equipment will enable it to achieve 2010 exit production of 14,000 tons per month from the Powhatan Mine. RAC anticipates it will produce approximately 130,000 tons in 2010 from the Powhatan Mine alone.

Radar Acquisitions currently has two main coal properties, operated through RAC, the Powhatan mine in Jefferson County, Alabama and the Davis Mine in the Franklin, Marion and Winston counties in Alabama.

RAC operates a surface mine at the Powhatan site and mined 6,316 tons of coal in the month of March 2010, up from 4,537 tons in January 2010. The company is targeting full production from current assets in Alabama of over 30,000 tons per month; 15,000 tons per month from Powhatan and 15,000 tons per month from the Davis Mine.

At Powhatan Mine, the company is mining two coal seams; the Blue Creek seam (metallurgical coal) and the Mary Lee seam (thermal or steam coal) with approximately 80% of current production being metallurgical coal. Coal is sold as mined and does not require any further washing/processing and the mine’s location, at a river load-out and in proximity of its customers, reduces the handling and hauling costs.

The coal is currently being sold into the local markets to both industrial users (metallurgical coal) and power plant customers (thermal coal). In March, RAC also sold some of its production into the seaborne markets.

At Davis Mine, RAC has obtained mineral leases on approximately 640 acres of land in the Franklin, Marion and Winston counties in Alabama. This site, referred to as the Davis Mine, is currently in the process of being permitted and a formal application is expected to be submitted within the next three months.

As part of this process, approximately 18 drill holes were completed with the aim to determine a USGS (United States Geology Survey) compliant resource estimate within the next 45 days. Once permitted, RAC plans to operate the Davis mine at an average of 15,000 tons per month and sell the thermal coal in the local power markets.