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International Coal Group Announces Start-Up of Commercial Coal Production at Beckley Mine
SCOTT DEPOT, W. Va., Sept. 5 /PRNewswire-FirstCall/ -- International
Coal Group (NYSE: ICO) today announced the commencement of commercial coal
production at its new Beckley Pocahontas Mine in Eccles, WV. At full
production in mid-2008, the Beckley complex is expected to produce 1.4
million tons annually of high-quality, low-volatile metallurgical coal for
both domestic and export steel markets. The Company estimates that the
Pocahontas No. 3 seam contains approximately 37 million tons of recoverable
coal reserves.
"Growing international demand for high-quality metallurgical coal and
stable domestic demand have resulted in substantial upward pricing pressure
for Beckley-type coal," said Ben Hatfield, President and CEO. "The ICG
Beckley complex is coming online at the right time to take advantage of
current market conditions."
Hatfield added, "This new mining complex will also play a major role in
the Beckley area economy, eventually employing approximately 180 miners,
preparation plant workers and office personnel."
ICG began construction at the mine in March, 2006, digging a 2,500-foot
slope for bringing coal to the surface and two 800-foot vertical shafts to
provide ventilation and an entrance portal for miners. The Beckley complex
also includes a preparation plant (currently under construction) and a rail
loadout facility. Both the preparation plant and rail loadout are expected
to become operational by mid-November. The complex will be served by CSX
railroad.
The Beckley Pocahontas mining complex is International Coal Group's
third new mining complex to go into production over the last 12 months.
Construction on the Company's new Tygart No. 1 Mine in Taylor County, West
Virginia, is expected to begin in 2008 with initial production expected in
mid-2009.
ICG is a leading producer of coal in Northern and Central Appalachia
and the Illinois Basin. The Company has 12 active mining complexes, of
which 11 are located in Northern and Central Appalachia and one in Central
Illinois. ICG's mining operations and reserves are strategically located to
serve utility, metallurgical and industrial customers throughout the
Eastern United States.
For more information, contact: Ira Gamm, vice president - investor and
public relations, at (304) 760-2619.
Forward-Looking Statements
This press release contains certain statements that are forward-looking
statements within the "safe harbor" provision of the Private Securities
Litigation Reform Act of 1995. Because these forward-looking statements are
subject to various risks and uncertainties, actual results may differ
materially from those implied in the forward-looking statements. The
following factors are among those that may cause actual results to differ
materially from the forward-looking statements: market demand for coal,
electricity and steel; availability of qualified workers; future economic
or capital market conditions; weather conditions or catastrophic
weather-related damage; ICG's production capabilities; the ongoing
integration of Anker and CoalQuest into ICG's business; the consummation of
financing, acquisition or disposition transactions and the effect thereof
on ICG's business; ICG's plans and objectives for future operations and
expansion or consolidation; ICG's relationships with, and other conditions
affecting, ICG's customers; the availability and cost of key supplies or
commodities, such as diesel fuel, steel, explosives or tires; prices of
fuels which compete with or impact coal usage, such as oil or natural gas;
timing of reductions or increases in customer coal inventories; long-term
coal supply arrangements; risks in coal mining; unexpected maintenance and
equipment failure; environmental, safety and other laws and regulations,
including those directly affecting ICG's coal mining and production, and
those affecting ICG's customers' coal usage; competition; railroad, barge,
trucking and other transportation availability, performance and costs;
employee benefits costs and labor relations issues; replacement of ICG's
reserves; ICG's assumptions concerning economically recoverable coal
reserve estimates; availability and costs of credit, surety bonds and
letters of credit; title defects or loss of leasehold interests in ICG's
properties which could result in unanticipated costs or inability to mine
these properties; future legislation and changes in regulations or
governmental policies or changes in interpretations thereof, including with
respect to safety enhancements; the impairment of the value of goodwill;
the ongoing impact from the Sago mine accident; ICG's liquidity, results of
operations and financial condition; the adequacy and sufficiency of ICG's
internal controls and legal and administrative proceedings, settlements,
investigations and claims. Forward-looking statements made by ICG in this
press release or elsewhere speak only as of the date on which the
statements were made. See also the "Risk Factors" of our 2006 Annual Report
on Form 10-K and in our subsequent filings on Form 10-Q, all of which are
currently available on our website at www.intlcoal.com. New risks and
uncertainties arise from time-to-time, and it is impossible for ICG to
predict these events or how they may affect ICG or its anticipated results.
ICG has no duty to, and does not intend to, update or revise the
forward-looking statements in this news release after the date of issue,
except as may be required by law.
SOURCE International Coal Group, Inc.
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