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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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