Massey Energy completes acquisition of Cumberland Resources Corp.
- April 19, 2010
Massey Energy Co. announced today that it has completed the acquisition of Cumberland Resources Corp. and its affiliated companies for $640 million in cash and 6.5 million shares of Massey common stock. Cumberland, located in Wise, Va., is one of the largest privately held coal producers in the country.
Last year, the production and sale of 7.8 million tons of Central Appalachian coal gave Cumberland revenue of $550 million. Cumberland’s operations include underground mines in Southwest Virginia and eastern Kentucky. The acquisition includes 416 million tons of contiguous coal reserves, a preparation plant in Kentucky and a plant in Virginia served by Norfolk Southern Railroad.
The acquisition will give Massey additional coal reserves after an explosion that killed 29 miners disrupted production at the company’s Upper Big Branch mine in Montcoal, W.Va.