“We’re always looking at strategic opportunities. In fact, we had been looking at opportunities in the Illinois Basin,” said Massey director of external affairs Jeff Gillenwater, noting that the associated expanded customer base was another key reason.
“We just felt that this location and … reserves next to the Green River and barge transportation presented such an opportunity,” he added.
Company chief Don Blankenship concurred: “This acquisition will allow us to participate in the anticipated market growth of the Illinois Basin.”
The deal, for which financial details were not disclosed, included various assets and a sublease obtained from Delaware Resources. The project is currently in the permit stages.
Gillenwater confirmed the 25 million tons of high-sulfur coal in the Kentucky No. 9 seam in McLean and Davis counties, Kentucky, will be extracted as a room and pillar operation, and that its 42-52 inch seam will be extracted at approximately 2.75 (clean) t/ft. No timetable has been established for the development of the property.
In related news, Blankenship has had his annual salary set at $US1 million as part of the terms of a new agreement for 2007, according to the Associated Press.
The compensation equates to $83,333 per month or $999,996 per year, and the company said his target cash incentive bonus for the year would equal $1.2 million, in addition to 250,000 stock options. Also, the news service said, if he remains with the company through the last day of 2007 he will receive a $300,000 retention bonus.
