United Coal Company, headquartered in Teays Valley, W.Va., announces its purchase of the assets of White Mountain Mining Co., LLC and certain affiliates.  White Mountain’s operations and reserves are located in Raleigh County, W.Va., near Beckley.

United Coal says the purchase will add more than 60 million tons of recoverable high-quality, low-volatile metallurgical coal to its reserves.

“This makes our third acquisition since The United Company relaunched United Coal,” Michael Zervos, president and CEO of UCC, said. “UCC was known as a coal powerhouse. We have a plan of growth through acquisitions and expanding reserves that will rival our former success.”

United Coal formed Pocahontas Coal Company LLC to acquire the White Mountain assets.  The acquired assets are two active deep mines - Josephine #2 and #3 in the Pocahontas #2 and #3 seams - and a coal preparation plant and rail loading facility in East Gulf, W.Va.  Additionally, the company acquired the idled Affinity mining complex, consisting of a slope mine, coal preparation plant and rail loading facility in Affinity, W.Va., and a lease on a large virgin block of Sewell coal known as the Weirwood reserve.

Nearly all former employees of White Mountain Mining and its affiliates will be offered the opportunity to work for Pocahontas Coal Company.

UCC plans to increase production from the Josephine #2 mine, reopen the Josephine #3 mine, and expand the existing high wall and surface mining operation.

“Our plan is to ramp up production aggressively from these assets and begin offering this low volatile coal with other high- and mid-volatile reserves in United Coal’s portfolio,” Zervos said. “Doing so will allow us to become a preferred provider in the metallurgical coal markets to both domestic and international customers.”

The new acquisition and its expansion are only part of UCC’s growth strategy.  It plans additional acquisitions in the near future.

James W. McGlothlin, chairman of The United Company, the parent of United Coal, is optimistic about the market for the recently acquired Pocahontas reserves and about the opportunity to continue to expand operations. 

“We thank (former White Mountain Mining owner) Joe Phillips and his son, Anthony, for their cooperation during this transaction and wish Joe the best of luck in his future endeavors,” McGlothlin said.  “We believe the acquisition of this unique reserve with so much potential, combined with others we are pursuing, will re-establish United Coal as a major player in the Central Appalachian coal market.”

United Coal is a privately held company, with subsidiaries in West Virginia and Eastern Kentucky.  It is owned by The United Company, a diversified holding company headquartered in Bristol, Va.