Operations

Patriot Coal is a leading coal producer in the eastern United States, with operations in Appalachia and the Illinois Basin. We and our predecessor companies have operated in these regions for more than 50 years.

In 2006, we sold 24 million tons of coal, of which 77% was sold to electric utilities and 23% was sold to domestic and global steel producers.

Our operations consist of seven company-operated mines, two joint venture mines and numerous contractor-operated mines serviced by eight coal preparation facilities, with one in northern West Virginia, four in southern West Virginia and three in western Kentucky.

We own a 30% interest in Dominion Terminal Associates, which operates a coal transloading terminal at Newport News, Virginia. We ship coal to electric utilities, industrial users and metallurgical coal customers via Patriot-controlled loading facilities and multiple rail and river transportation routes.

Our mining operations and coal reserves are as follows:

Appalachia
In southern West Virginia, we have three company-operated mines, two joint venture mines and numerous contractor-operated mines, serviced by four coal preparation plants. These operations and related infrastructure are located in Boone and Kanawha counties. In northern West Virginia, we have one company-operated mine, serviced by a preparation plant and related infrastructure. These operations are located in Monongalia County. We sold 15.3 million tons of coal in 2006 and control 555 million tons of reserves in Appalachia, of which 188 million tons are assigned to current operations.

Illinois Basin
In the Illinois Basin, we have four company-operated mines, serviced by three preparation plants. These operations and related infrastructure are located in Union and Henderson counties in western Kentucky. We sold 9.0 million tons of coal in 2006 and control 866 million tons of reserves in the Illinois Basin, of which 137 million tons are assigned to current operations.