Coal International reports strong WV update

COAL International has posted an update for its West Virginia activities in the first nine months of 2006, reporting production of almost 350,000 raw tons of thermal coal by the end of September and sales in excess of 200,000t.
Coal International reports strong WV update Coal International reports strong WV update Coal International reports strong WV update Coal International reports strong WV update Coal International reports strong WV update

Production commenced at Gauley Eagle in December 2005

Staff Reporter

The company also renovated an idle preparation plant and received approval for a surface and an underground mine during the period.

Coal International’s wholly owned subsidiary, King Coal, commenced operations in West Virginia in early 2006, first establishing underground mining operations at the Gauley Eagle property, followed by the establishment of a surface mining operation at Gauley Eagle.

Both the underground and surface mining operations were initially operated by third party contractors, but the company took over all mining operations in the third quarter of 2006, and has since reported substantially increased productivity.

King Coal obtained permits to begin mining the Crooked Run surface mine in February 2006 and the necessary equipment, skilled management and operating personnel were secured to allow the company to begin operating the mine as a captive facility in mid August 2006.

King Coal’s Silo Mains underground mine began producing in July 2006 and has since improved productivity and operating cost ratios.

A complete refurbishment of the Gauley Eagle preparation plant was commissioned in June 2005 and in March 2006 King Coal completed the initial phase of the renovation of preparation plant, slurry handling facilities, raw coal feed belt, one clean coal silo and associated clean coal belts.

A raw coal crushing facility for direct ship products was installed in July and an automated coal loading and weighing system was installed in April.

“Coal quality has been very well received in the marketplace with additional business being secured as a result,” the company said.

“With expanded production, plant operating costs continue to improve with the August 2006 cost being 50 percent of the March 2006 cost.”

Coal International’s second wholly owned subsidiary, Maple Coal, is developing the Powellton property, which contains both surface and underground coal resources.

The Sycamore South Surface Mine is in advanced stages of obtaining permits to mine approximately 250,000t of remaining coal from this initial site.

Mining permits have been issued for the Sycamore North Surface Mine but the company needs further approvals which are anticipated to be issued in May 2007.

“We are pleased with the progress that the management of King Coal have made in the first nine months of the calendar year,” the company said.

“We look forward to continued successful development and increasing production from West Virginia.”