Massey pushes expansion to take advantage of increasing Asian coal demand
By Tim Huber, APWednesday, January 13, 2010
Massey Energy pushes expansion plans
CHARLESTON, W.Va. — Mine operator Massey Energy Co. is taking steps to capitalize on growing Asian demand for coal used in steelmaking.
The mining company from Richmond, Va., plans to develop a mining complex capable of producing 2 million tons a year of metallurgical coal — a type of coal used in steelmaking. The complex announced late Tuesday will employ 500 people in southern West Virginia.
Work on the first mine at the site is expected to cost up to $160 million and start in the second quarter.
Surging demand in China and other parts of Asia is outstripping supply from Australia and helping U.S. coal producers.
The intensified demand is expected to push metallurgical coal prices to $165 a ton, up from $149.
