Massey Energy Acquires Strategic River Terminal

RICHMOND, Va., July 8 /PRNewswire-FirstCall/ -- Massey Energy Company (NYSE: MEE) announced today that it has acquired the assets and permits of the Marmet Dock river barge loading facility from Kanawha River Terminals, LLC.  Located at mile post 69 on the Kanawha River near Marmet, WV, this strategic facility is convenient to Massey's Route 3 operations, as well as its Inman, Black Castle and Republic resource groups. This active dock facility boasts state-of-the-art infrastructure and ground storage capacity of 300,000 tons.  The annual loading capacity of the facility, as currently configured, is in the range of 5 to 7 million tons.

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"We are very pleased with our acquisition of the Marmet Dock facility," said Massey's President, Baxter F. Phillips, Jr.  "The addition of these assets will provide us with key advantages in our strategy to expand our sales of high quality metallurgical coal.  We can use this facility to blend different types of coal from several of our resource groups, thereby creating custom coal products that command premium prices."

"We expect to realize significant savings in transportation costs by shipping more coal on the river versus shipping by rail," Phillips added.  "Ultimately the tons we blend and ship through Marmet can be loaded more efficiently on export vessels."

In 2009 Massey shipped approximately 8 million tons of coal on the inland waterway system to both domestic and export customers.  The Marmet Dock facility is expected to enhance the Company's ability to serve an expanding domestic and international customer base.  In particular, Marmet is expected to be helpful in boosting exports through the Gulf of Mexico.

Company Description

Massey Energy Company, headquartered in Richmond, Virginia, with operations in West Virginia, Kentucky and Virginia, is the largest coal company in Central Appalachia and is included in the Standard & Poor's 500 Index.

Forward Looking Statements

FORWARD-LOOKING STATEMENTS:  Certain statements in this press release constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to come within the safe harbor protection provided by those sections. Any forward-looking statements are also subject to a number of assumptions regarding, among other things, future economic, competitive and market conditions. These assumptions are based on facts and conditions as they exist at the time such statements are made as well as predictions as to future facts and conditions, the accurate prediction of which may be difficult and involve the assessment of circumstances or events beyond the Company's control. The Company disclaims any intent or obligation to update these forward-looking statements unless required by securities law, and the Company cautions the reader to not rely on them unduly. Caution must be exercised in relying on forward-looking statements including disclosures that use words such as "believe," "anticipate," "expect," "estimate," "intend," "may," "plan," "project," "will," and similar words or statements that are subject to risks, trends and uncertainties that could cause the Company's actual results to differ materially from the expectations expressed or implied in such forward-looking statements. Factors potentially contributing to such differences include, among others: the Company's cash flows, results of operation or financial condition; the impact of the Upper Big Branch mine explosion; the successful completion of acquisition, disposition or financing transactions, including the acquisition of Cumberland, and the effect thereof on our business; our ability to successfully integrate the operations we acquire, including as a result of the acquisition of Cumberland; governmental policies, laws, regulatory actions and court decisions affecting the coal industry or our customers' coal usage; legal and administrative proceedings, settlements, investigations and claims and the availability of insurance coverage related thereto; inherent risks of coal mining beyond our control, including weather and geologic conditions or catastrophic weather-related damage; inherent complexities make it more difficult and costly to mine in Central Appalachia than in other parts of the United States; our production capabilities to meet market expectations and customer requirements; our ability to obtain coal from brokerage sources or contract miners in accordance with their contracts; our ability to obtain and renew permits necessary for our existing and planned operations in a timely manner; the cost and availability of transportation for our produced coal; our ability to expand our mining capacity; our ability to manage production costs, including labor costs; adjustments made in price, volume or terms to existing coal supply agreements; the worldwide market demand for coal, electricity and steel; environmental concerns related to coal mining and combustion and the cost and perceived benefits of alternative sources of energy such as natural gas and nuclear energy; competition among coal and other energy producers, in the United States and internationally; our ability to timely obtain necessary supplies and equipment; our reliance upon and relationships with our customers and suppliers; the creditworthiness of our customers and suppliers; our ability to attract, train and retain a skilled workforce to meet replacement or expansion needs; our assumptions and projections concerning economically recoverable coal reserve estimates; our failure to enter into anticipated new contracts; future economic or capital market conditions; foreign currency fluctuations; the availability and costs of credit, surety bonds and letters of credit that we require; the lack of insurance against all potential operating risks; our assumptions and projections regarding pension and other post-retirement benefit liabilities; our interpretation and application of accounting literature related to mining specific issues; our assumptions concerning economically recoverable coal reserve estimates, and the successful implementation of our strategic plans and objectives for future operations and expansion or consolidation.

Additional information concerning these and other factors can be found in press releases and Massey's public filings with the Securities and Exchange Commission, including Massey's Annual Report on Form 10-K for the year ended December 31, 2009, which was filed on March 1, 2010 and subsequently filed interim reports.  Massey's filings are available either publicly, on the Investor Relations page of Massey's website, www.masseyenergyco.com, or upon request from Massey's Investor Relations Department: (866) 814-6512 (toll free).  For further information, please visit Massey's website at www.masseyenergyco.com.

SOURCE Massey Energy Company

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