The Houston-based company said the majority of the coal to be shipped through IMT, located in Myrtle Grove on the lower Mississippi River, will be metallurgical output set for export from its central Appalachian operations.

Under the deal, river barges will transport coal from various origins to IMT, where it will be offloaded and stored before being shipped by ocean vessel.

The agreement is for 15 years, with a minimum anticipated throughout of 4Mt per annum.

Kinder Morgan said it would expand its storage yard, add conveyor belts and environmental control systems, and make other improvements to help accommodate the additional tonnage. The enhancements, estimated to cost $US70 million, should be completed by the middle of 2012.

"We are pleased to enter into this contract with Massey, which reflects continuing strong demand for coal export capacity," Kinder Morgan Terminals business unit president Jeff Armstrong said.

Massey did not respond to an ILN request for comment by press time.