Wednesday, January 13, 2010

Massey Energy Pushes Ahead With WVa Expansion Plan

Massey Energy says it's going to start developing a coking coal operation that eventually will employ more than 500 miners in West Virginia.

Massey says the move announced Tuesday is aimed at taking advantage of growing demand for coking coal by steelmakers, particularly in Asia.

Securities firm Dahlman Rose estimates China imported 34 million tons of coal last year, up from 7 million in 2008. The firm expects demand to push U.S. coking coal prices to $165 from $149.

Richmond, Va.-based Massey predicts the new Raleigh County operation eventually will include several mines and produce 2 million tons annually. Work on the first mine is expected to start mine in the second quarter, with shipments starting next year. Massey estimates the site holds about 56 million tons of coal.

Source: Daily Prcess

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