As part of the company's efforts to continue developing high quality reserves that will increase metallurgical coal production, the company has begun construction of a 700 t/hour processing plant featuring two 10,000t clean coal silos and a 25,000t raw coal stockpile area at an estimated cost of US$65M.
The plant is expected to be completed in the third quarter of 2011 and will initially process high quality, low-vol metallurgical coal from the company's Guyandotte operation and currently being developed Sewell seam.
In 2012, the plant will also process coal from two underground miner sections operating in a 45 mt reserve base that is contiguous to Guyandotte.
"The addition of our new Pineville Processing plant will enhance our position as a leading supplier of high quality met coal," said Don Blankenship, chairman and CEO.
"With the global met market expected to remain strong, this new investment will help us meet customer needs and is part of our previously announced metallurgical coal expansion initiative."
Massey Energy, headquartered in Richmond, Virginia, with operations in West Virginia, Kentucky and Virginia, is the largest coal producer in Central Appalachia.