Privately held United Coal, owned by The United Company, formed Pocahontas Coal Company to acquire the White Mountain assets.

Included in the deal are the Josephine #2 and #3 mines working in the Pocahontas #2 and #3 seams, a coal preparation plant and rail loading facility in East Gulf, West Virginia.

The company also bought the idled Affinity mining complex, consisting of a slope mine, coal preparation plant and rail loading facility and a lease on a large virgin block of Sewell coal known as the Weirwood reserve.

"This makes our third acquisition since The United Company relaunched United Coal," president Michael Zervos said. "UCC was known as a coal powerhouse. We have a plan of growth through acquisitions and expanding reserves that will rival our former success."

UCC plans to increase production from the Josephine #2 mine, reopen the Josephine #3 mine, and expand the existing high wall and surface mining operation.

"Our plan is to ramp up production aggressively from these assets and begin offering this low volatile coal with other high- and mid-volatile reserves in United Coal's portfolio," Zervos said. "Doing so will allow us to become a preferred provider in the metallurgical coal markets to both domestic and international customers."

UCC's plans additional acquisitions in the near future. United chairman James McGlothlin said future deals and the White purchase would help re-establish United Coal as a major player in the Central Appalachian coal market.