NBC12 News, Weather Sports, Traffic, and Programming Guide for Richmond, VA | Massey wins auction for 15M tons of reserves
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Associated Press - October 28, 2009 3:35 PM ET
CHARLESTON, W.Va. (AP) - Massey Energy says it's won a bankruptcy auction for 15 million tons of northern West Virginia coal reserves.
Spokesman Jeff Gillenwater says Massey is buying the Barbour County reserves from bankrupt Kentucky-based operator Appalachian Fuels. Gillenwater says the deal still needs court approval.
The acquisition would be Massey's second from Appalachian. In September, Massey bought 23 million tons of reserves and other assets in Fayette County from the company for $5.1 million.
Chief executive Don Blankenship told analysts Wednesday that Massey plans to begin mining metallurgical coal from the Fayette property next month. He says the Barbour reserves also may qualify as metallurgical coal, which is used to make steel.
Richmond, Va.-based Massey operates mines in West Virginia, Virginia and Kentucky.
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