With the increased funding Massey stands to invest approximately $310 million in the expansions.
Chief executive Don Blankenship said Massey was trying to optimise value in the strong coal market, and had also increased price per ton estimates for its metallurgical coal, from original 2008 estimates of $54–56 per ton.
“We now expect our average price realisation to be in the range of $61 to $63 per ton in 2008," he said.
“The extremely strong metallurgical coal market is the primary driver of our average price increase and is putting us on a path for another record-breaking year."
In the first quarter of 2008 Massey produced 9.9 million tons, approximately 600,000t less than during the same time in 2007.
Expansion projects already underway this year include a major expansion at the Mammoth resource group, which is near completion, and a change from longwall mining to room and pillar continuous miner operations at the Logan County resource group.
Massey has also announced new expansion projects, including the reactivating of an existing mine at the Elk Run resource group expected to produce low-cost, high quality thermal coal, and a new surface mining operation at the Knox Creek resource group, which will produce metallurgical quality coal.