Message #8 From:
NewsBot Date: September 7, 2006 06:17:00 AM
FCL News Foundation Coal Enhances West Virginia Operations Through Strategic Acquisition
LINTHICUM HEIGHTS, Md.--(BUSINESS WIRE)--Sept. 7, 2006--Foundation Coal Holdings, Inc. (NYSE:FCL) today announced the acquisition of reserves and equipment adjacent to its operating affiliate, Pax surface mine in West Virginia. The purchase integrates 7.3 million tons of proven coal reserves to the Pax Mine, operated by Foundation Coal affiliate, Pioneer Fuel Corporation. At full capacity the new operation will add up to 720,000 tons annually to existing production.
According to Jim Olsen, Foundation Coal's senior vice president of development and information technology, "The advantages of combining this new asset with our existing operation are significant. The properties are close to one another and utilize similar mining methods and equipment, which will provide the operation with flexibility at reduced overhead. The fact that all production can move through the new rail loadout is equally important."
The reserves are high quality and are expected to yield a mix of approximately 40% metallurgical and 60% steam coal products. Pioneer Fuel's existing Pax operation, located in Raleigh County, currently produces both metallurgical and steam coal. Through a focused business development strategy, the newly operational Pax rail loadout facility plays an integral part in the new acquisition. The loadout's receiving and handling capacities will easily absorb near and long-term production increases realized from the acquisition and eliminate significant per-ton trucking costs.
Foundation Coal Holdings, Inc., through its affiliates, is a major U.S. coal producer with 14 coal mines and related facilities in Pennsylvania, West Virginia, Illinois, and Wyoming. Through its subsidiaries Foundation Coal employs approximately 3,000 people and produces approximately 70 million tons annually, largely for utilities generating electricity. Foundation's corporate offices are in Linthicum Heights, MD.
