ABINGDON, Va., May 1, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Alpha Natural Resources, Inc. (NYSE: ANR), a leading Appalachian coal producer, has completed the acquisition of certain coal mining operations in eastern Kentucky from Progress Fuels Corp., a subsidiary of Raleigh, North Carolina-based Progress Energy (NYSE: PGN).
Alpha acquired the stock of Diamond May Coal Co. and Progress Land Corp. and certain assets of Kentucky May Coal. Co., Inc. from Progress Fuels. Collectively the acquired businesses control 73 million tons of coal reserves and produced about three million tons of coal last year. The purchase price was $23 million plus an adjustment of approximately $3.7 million for working capital, subject to post-closing adjustments.
Alpha financed the transaction through its revolving credit facility.
About Alpha Natural Resources
Alpha Natural Resources is a leading producer of high-quality Appalachian coal. Including the newly acquired Progress operations, approximately 91 percent of the company's reserve base is high Btu coal and 84 percent is low sulfur, qualities that are in high demand among electric utilities which use steam coal. Alpha is also one of the nation's largest producers and exporters of metallurgical coal, a key ingredient in steel manufacturing. Alpha and its subsidiaries currently operate mining complexes in four states, consisting of 72 mines feeding 12 coal preparation and blending plants. The company and its subsidiaries employ more than 3,700 people.
SOURCE Alpha Natural Resources, Inc.
Ted Pile of Alpha Natural Resources, Inc., +1-276-690-5300
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