Richmond-based James River Coal Co. announced Monday morning it plans to buy coal reserve and permits from Lexington, Ky.-based Cheyenne Resources Inc. for $40 million.
The deal includes 10.2 million tons of proven and probable surface reserves and 3.6 million tons of proven and probable underground reserves. The reserves can be mined immediately because permits are already in place.
The new mines should reach their capacity of producing 500,000 tons of coal a year by the end of 2008.
The company plans to move its current employees and equipment to the Cheyenne mining site in August. The company will return to its current mining sites this fall or early 2009.
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