ABINGDON, Va., Jan. 19 /PRNewswire-FirstCall/ -- Alpha Natural
Resources, Inc. (NYSE:
ANR -
News) has agreed to join the
Virginia Department of Transportation (VDOT) and others in advancing the
proposed 51-mile Coalfields Expressway project, connecting southwestern Virginia
counties to the West Virginia Expressway.
In a press conference jointly held in Richmond and Abingdon today, involving
state transportation officials and a bipartisan delegation of local legislators,
Virginia's Transportation Secretary Pierce Homer told reporters that VDOT was
moving forward on the Coalfields Expressway project with Alpha Natural
Resources, LLC and Pioneer Group, Inc., another southwest Virginia natural
resource company.
Alpha and Pioneer will use coal recovery opportunities to lower the cost of
building the base roadbed for the project.
"This is a high priority for the Commonwealth," Homer said. "We believe that
the partnership with Alpha and Pioneer will help us bring down some of the cost
estimates. We look forward to a real strong and viable business partnership in
the coming years."
Alpha's acquisition of the Nicewonder Coal Group in October included the
acquisition of a road construction and coal recovery business that is currently
working on an 11-mile segment of the 90-mile King Coal Highway in southern West
Virginia. Over the life of the project, Alpha expects to recover approximately 3
million tons of coal for use by electrical utilities while creating a
rough-grade road base for the four-lane highway. Alpha plans to use this road
construction and coal recovery business as a template for the project announced
today in Virginia.
"We're going to be able to draw on the work that Don Nicewonder and the
Nicewonder group initiated in West Virginia on the King Coal Highway that
established a lot of the parameters we'll be able to use in Virginia," said
Michael J. Quillen, president and CEO of Alpha Natural Resources. "It's a great
opportunity for economic development, tourism, safe travel for residents, and
also an opportunity for our employees going forward."
The planned Coalfields Expressway will be a new four-lane highway stretching
51 miles from Pound in Wise County, through Dickenson and Buchanan counties. It
will link with the West Virginia Coalfields Expressway near Paynesville, West
Virginia. Alpha estimates that approximately 31 miles of the planned expressway
traverses land where the company controls underlying coal mineral rights.
Under Virginia's Public Private Transportation Act (PPTA), Alpha and Pioneer
will work with VDOT on a new comprehensive agreement to reflect the highway
being built in conjunction with the development of Alpha and Pioneer coal
reserves. In addition, the parties will seek to work with the Federal Highway
Administration for the use of federal funds on the project.
Kellogg Brown and Root recently completed preliminary design and engineering
for Section A of the corridor. VDOT's estimate to build the project is
approximately $2.3 billion.
About Alpha Natural Resources
Alpha Natural Resources is a leading producer of high-quality Appalachian
coal. Approximately 92 percent of the company's reserve base is high Btu coal
and 90 percent is low sulfur, qualities that are in high demand among electric
utilities which use steam coal. Alpha is also one of the nation's largest
producers and exporters of metallurgical coal, a key ingredient in steel
manufacturing. Alpha and its subsidiaries currently operate mining complexes in
four states, consisting of 69 mines feeding 11 coal preparation and blending
plants. The company and its subsidiaries employ approximately 3,200 people.
ANRG
Forward-Looking Statements
Certain statements in this news release are forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995. Alpha Natural
Resources, Inc. ("Alpha" or "the company") uses the words "anticipate,"
"believe," "could," "should," "estimate," "expect," "intend," "may," "predict,"
"project," "target" and similar terms and phrases, including references to
assumptions, to identify forward-looking statements. These forward-looking
statements are based on Alpha's expectations and beliefs concerning future
events affecting the company and involve certain risks and uncertainties that
may cause actual results to differ materially from expectations as of the date
of this release. These factors are difficult to accurately predict and may be
beyond the control of the company. The following factors are among those that
may cause actual results to differ materially from our forward-looking
statements: market demand for coal, electricity and steel; our ability to
integrate the Nicewonder acquisition into Alpha's existing operations; our
ability to maintain an adequate labor force and other employee workforce
factors; weather conditions or catastrophic weather-related damage; the
company's production capabilities; the company's relationships with, and other
conditions affecting its customers; the timing of reductions or increases in
customer coal inventories; long-term coal supply arrangements; environmental
laws, including those directly affecting Alpha's coal mining and production, and
those affecting its customers' coal usage; railroad, vessel and other
transportation performance and costs; Alpha's assumptions concerning
economically recoverable coal reserve estimates; regulatory and court decisions;
future legislation and changes in regulations or governmental policies;
uncertainties of pending litigation; changes in postretirement benefit and
pension obligations; and Alpha's liquidity, results of operations and financial
condition. These and other additional risk factors and uncertainties are
discussed in greater detail in the company's Annual Report on Form 10-K,
registration statement on Form S-1 (file no. 333- 129030) and other documents
filed with the Securities and Exchange Commission. Forward-looking statements
made by the company in this news release or elsewhere speak only as of the date
made. New uncertainties and risks come up from time to time, and it is
impossible for the company to predict these events or how they may affect the
company. The company has no duty to, and does not intend to, update or revise
the forward-looking statements in this news release after the date it is issued.
In light of these risks and uncertainties, investors should keep in mind that
the results, events or developments disclosed in any forward-looking statement
made in this news release may not occur