Foundation said on Thursday its third-quarter earnings will be reduced by approximately $US0.17 per diluted share. EBITDA (earnings before interest, tax, depreciation and amortisation) will be reduced by about $18-22 million compared to the second quarter of 2006.

Foundation said strong operational performance at its Wyoming and Pennsylvania affiliates partly compensated for the impact of the longwall move and miners' vacations.

However, operational challenges at its Illinois and West Virginia operations offset the gains in Wyoming and Pennsylvania.