Patriot Coal in joint venture to develop reserves in West Virginia

St. Louis Business Journal - by Matt Allen

Patriot Coal Corp. entered into a joint venture agreement with an unidentified Charleston, W.V.-based investor group to develop certain Patriot reserves in the Central Appalachian Kanawha River region in West Virginia, the company announced Thursday.

Patriot holds a 49 percent interest in the joint venture, will lease up to 25 million tons of undeveloped coal reserves to the joint venture, and will contribute a minimal amount of cash, though the exact amount was not disclosed.

The joint venture will purchase the Slaughters Creek preparation plant near the Kanawha River and associated infrastructure. It has also negotiated a throughput contract for the Chelyan Dock to transload coal from truck to barge.

Patriot said the joint venture is expected to reach an initial annual production level of at least 1 million tons.

St. Louis-based Patriot Coal Corp. (NYSE: PCX) produces and markets coal in the eastern U.S., with 10 company-operated mines and numerous contractor-operated mines in Appalachia and the Illinois Basin. The company ships to electric utilities, industrial users and metallurgical coal customers, and controls approximately 1.3 billion tons of proven and probable coal reserves.

matthewallen@bizjournals.com

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