National Coal’s second quarter revenues reached $US23.8 million, up 48.9% from $16 million in the same period last year, with 456,000 tons of coal sold in the three month period, up from 288,000t in the same prior-year period.

Improvements at the company’s Baldwin facility and the Devonia rail spur are near completion and once all three of the new mines are open and produce consistent results, it is anticipated they will produce an additional 55,000t of saleable coal per month.

National Coal chief executive, president and chairman Jon Nix said the company’s progress during the June quarter has been significant.

“In the second half of this year, we want to be prepared to handle the additional production that will occur and focus on managing our cost of sales much more effectively.

“The purchase of the short line railroad in the first quarter of 2006 and the upcoming opening of the Baldwin preparation facility have positioned us to lower our overall cost of sales by mining on our owned reserves, which, at a minimum, will not require royalty payments on the additional tonnage from the New River Tract."

“As our production and revenue increase with the addition of these new mines, we look forward to the improved EBITDA and cash flow they will generate throughout the third and fourth quarters,” National Coal chief financial officer Mike Love said.