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The aggressive outlined strategy, which will ramp up output beginning in 2008 and 2009, will increase its market share going forward while it also focuses on cost reduction. The producer currently holds double the market share in the region over its nearest competitor.

"We have the capital, resources and market position to execute our strategic plans for growth," said Massey chief Don Blankenship. "With a large portfolio of idle reserves, we have abundant opportunities to expand low-cost production."

"We expect to be able to take further advantage of current strong metallurgical coal prices and expected favorable long-term utility coal fundamentals to earn attractive margins and high returns on these investments," and officials added that all of the expansion plans will be funded from the company's operating cash flow for 2008 and 2009 along with its existing liquidity.

Knox Creek

The company will be working to develop two miner sections at its Knox Creek complex in Virginia, an estimated 500,000tpa operation which will extract from the Jawbone seam. The output, primarily earmarked for international customers, will be transported directly to its Knox Creek prep plant and onto Norfolk Southern rail when the mine commences production in the latter half of 2009.

Development plans for the mine are ongoing, as slope construction is set to begin during the first quarter of next year.

Sidney

Massey is working to complete a new slope into the Pond Creek seam at its Sidney Resource Group complex in Pike County, Kentucky during early 2008. While the company has mined from the seam for two decades, the expansion will help it produce 1Mtpa while transferring higher cost production to other places.

Delbarton

The already 800,000tpa Delbarton complex in Mingo County, West Virginia, will see a jump in output following construction of a new air shaft and portal facilities, a project which is in its final design and permitting stages. The work, it said, will place an additional continuous section in the last quarter of next year that will add another 300,000tpa to its total production while the expanded facility infrastructure will allow for an additional 400,000 tons in 2010.

Rawl

A new mine is on the horizon for the company’s Rawl Resource Group, which has begun development on the new complex and anticipates completion by mid-2008 with start-up just after. Officials for Massey indicated the mine could see approximately 360,000tpa for initial production.

Mammoth

An extension of loadout facilities as well as beltline at the Mammoth Resources complex in Kanawha County, West Virginia could increase production in 2010 to about 1.5Mt more than 2007.

The belt line system, expected to be operational during the latter half of 2008, will allow for greater access to shipping through the Kanawha River Barge or Norfolk Southern rail.

“The coal reserves and facilities are expected to be advantaged versus competitor operations due to 5 to 7 feet seam heights, the shipping flexibility and the fact that much of the reserve is owned in fee,” it said. Massey has finished work on a portal and airshaft facility into a high-BTU, low ash PCI coal but its work with the Stockton and Coalburg seams will add mid-quality thermal output to the company’s docket, all of which will be shipped to the existing Mammoth preparation plant by belt.

Guyandotte

The finishing touches are being put on this rehabilitation project into the Pocahontas 3 seam at Wyoming County, West Virginia’s Guyandotte Energy Resource Group.

MSHA recently approved the complex's seal plan and the company said normal production could commence early next year, adding 250,000 tons in 2008, 750,000 tons in 2009, and 900,000 tons in 2010 for shipping to international customers.

“Alternatively, the company may choose to monetize the coal reserve by divesting all or part of the property,” Massey noted.

Boone County

The producer said it will expand its operations in Boon County, West Virginia, on the state's Route 3. Mines that were developed in the region during this year will have two additional miner sections to increase 2010 tonnage by about 900,000 tons over this year.

Aracoma

A reduction in cost of as much as $US25/ton could be realised from the replacement of its longwall face with three continuous miner sections. The company said geological conditions at the face brought operating costs to an "unacceptable level" this year.

Two sections are already in place, having commenced last month and this month. The third, it said, is slated for start in 2008's first quarter once the last panel is mined out and the equipment can be removed and, once completed, is anticipated to produce 1.2Mt in 2008 over 900,000t reported in 2007.

Logan County

Massey's eighth highwall miner will begin working this month at the company’s Logan County Resource Group, which will bring an additional 300,000tpa to the operator’s bottom line. "The miner will operate primarily on the North-South surface mine which has been restarted this month after having been idled this past year," it said.

Empire and Republic

A new surface operation is slated to begin work in Kanawha County, West Virginia following the ordering of equipment. When active, the mine is anticipated to produce about 600,000t annually.

Also, the move of an electric shovel next year from its Nicholas Energy Resource Group to its Republic Energy Resource Group will add an additional 200,000tpa. The movement of the 53 yard shovel will also reduce average cash costs by $8t.

New resources, new horizons

Massey also said it will establish a new resource group in the state's southern region of Boone County, West Virginia, that will, in time, operate five or six room and pillar section totaling 1.6Mtpa of output. Initial production could kick off as early as late 2008, and by 2010 could realise more than 2Mtpa.

"The Company believes it will significantly increase its earnings power going forward with the new mine developments discussed above and additional mine developments and acquisition activity over the next three years,” officials for Massey said Thursday. “By 2010, the company is scheduled to have completed most all of the expansion projects under development and will have distanced itself even further from its regional competitors, in terms of market share and cost advantage."

Blankenship said the company as a whole is "enthusiastic" about the strategic moves. "We will aggressively pursue internal expansion," he noted.

"At the same time, we will maintain the flexibility to consider other opportunities and to monetize certain non-core assets at attractive values or make strategic acquisitions that can add to shareholder value."