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The Kepler mine has an estimated 40-50 million tons of low volatile reserves and, if viable, could potentially add 500,000-1,000,000t of production as early as 2006.

The strong coking coal marked has played out well for Massey who counts itself as one of the biggest metallurgical coal producers in the US, as well as a significant exporter. Average pricing on metallurgical coal tonnage increased by 38% to $US56.68 per ton in the 2005 first quarter ending March 31, compared to the 2004 first quarter.

Massey last week reported strong first quarter results, making a great start to what was shaping to be a solid year for the central Appalachian producer.

Coal revenues for the first quarter were $US447.9 million, up 31% on the comparable period in 2004. Included in the earnings was a pre-tax gain of approximately $US34 million from the sale of Big Elk Mining Company, and a pre- tax adjustment of $US9.1 million.

The company reported after-tax earnings for the first quarter of $US50.6 million, compared to an after-tax loss of $US2.2 million in the 2004 first quarter.

Massey sold 10.6Mt for the quarter and produced 11.3Mt.

The company reported flooding on the Ohio River in January curtailed some of its shipments. In addition, congestion due to heightened demand and lack of resources continued to result in insufficient availability of rail cars and barges to move all the coal the Massey produced during the quarter.

Last week, a multi-million dollar lawsuit was filed against Massey by Wheeling- Pittsburgh Steel for breaching its long-term coal supply agreement. Massey chairman Don Blankenship responded by stating Massey had “been forced to declare force majeure on multiple occasions due to transportation issues, labour shortages and other occurrences which are clearly defined by the coal supply contract as events of force majeure".

Blankenship said the company's ability to achieve its goal of shipping between 46-48Mt in 2005 would be largely dependent on the availability of transportation.