Metinvest-Backed United Coal Plans $350 Million Investment to Expand Coal Mining in Eastern U.S.

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Researched by Industrial Info Resources (Sugar Land, Texas)--United Coal Company (Blountville, Tennessee), a subsidiary of Ukrainian integrated mining and steel holding company Metinvest Holding LLC (Donetsk, Ukraine), is developing $350 million in coal mine projects in the eastern U.S.

Metinvest's major shareholder is SCM Group, which has 75% ownership. United Coal operates five coal-mining subsidiaries, with coal mines operating in the Appalachian coal basin in Kentucky, Virginia and West Virginia. United Coal plans to add at least 4 million tons per year of coal mining capacity for use at U.S. locations and for export to Metinvest's steel mills in Europe and Ukraine.

United Coal is nearing initial startup of its rehabilitated Affinity underground mine and new coal preparation plant in West Virginia. The $115 million project began construction in 2009. Initial production is expected by July 2011, with full production capacity of 1.5 million tons per year by the end of 2012.

Through subsidiary Carter Roag Coal, United Coal is permitting a new underground coal mine known as Beech Mountain near Helvetia, West Virginia. This will be a relatively small $20 million project to produce 200,000 tons of metallurgical coal per year.

Subsidiary Pocahontas Coal is developing new coal mines at Roaring Creek and Tommy Creek in West Virginia. The $200 million Roaring Creek project is an underground coal mine and 1,000-ton-per-day coal preparation plant. Both projects are seeking permits and hope to begin construction this year.

Industrial Info is tracking United Coal's coal mining projects along with hundreds of other mining projects in the U.S. as part of its Mining Tracker.

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