Earnings were up to $US1.9 million, compared quarter-for-quarter with last year when the company reported break-even earnings and net income. Without the expenses relating to the long-term idling of Wabash, the Illinois operation it suspended earlier this year, earnings were $3.3 million versus $7.7 million last year.

Revenue was also up, but only slightly; Foundation reported a 1% increase to $359.1 million from $354.1 million in 2006's third quarter.

The results were impacted positively by the performance of its Powder River Basin and Central Appalachian mines, but the progress was offset by geological conditions at the Emerald mine that resulted in lower shipments and higher operating expenses.

"Foundation's results were impacted by geologic conditions that slowed mining and reduced production at our Emerald mine in Northern Appalachia, reducing shipments by 550,000 tons and adjusted EBITDA for the third quarter by approximately $19 million," Foundation chairman James Roberts said.

"Excluding the impact of the geological challenges encountered at Emerald, Foundation Coal experienced strong operating performance, including record shipments from the Powder River Basin which rose to 13.3 million tons during the quarter."

Officials offered updates on various company projects, including its previously-announced plan to push the start of Emerald's second longwall to the first quarter of 2008 in light of the same geological issues that caused the production setback of about 550,000t. The adjusted plan, he said, "will provide the opportunity for increased production at Emerald by eliminating down time during longwall moves and providing backup tonnage if adverse geological conditions are encountered by the primary longwall".

Roberts also said a belt conveyor installation project at its Belle Ayr mine has been completed and is now in operation. The enhancement will aid the complex in upping its production by 5Mtpa as well as reduce its truck transport, tyre and diesel fuel use.

Additionally, the company reported that three of its operations had received safety and environmental honors recently, including its Kingston No 2 and Paynter Branch mines in West Virginia who earned Joseph A Holmes Safety Awards.

The Belle Ayr mine received the 2007 Director's Award from the United States Department of the Interior, Office of Surface Mining for its work into stream restoration.

Roberts was positive as he provided Foundation's outlook: "Based on increasing global demand for coal, strengthening pricing environment in all regions, and our expectation for increased shipments from our Northern Appalachian operations in 2008 and beyond, we remain confident that Foundation is well-positioned to deliver increased shareholder value over the long-term."