American Power Corp. (OTC.BB:TGMP) will proceed to kick start the development of its advanced Pace Coal Project in Judith Basin County, Montana.
In April 2010, American Power Corp. acquired roughly 29,000 acres, which make up the Pace Coal Project. In 1979 Mobil Oil Co. (now ExxonMobil) drilled 30 holes over 14,000 of the project’s acreage, and delivered 45 samples which were later sent to an independent laboratory for analysis. It was subsequently determined that both the quality and the quantity of coal on the Pace acreage was high and significant, respectively. Several independent reports were commissioned based on the development work undertaken by Mobil Oil, determining there could be in excess of 410 million tons of high volatility bituminous coal potential on the Pace acreage.
American Power Corp. has access to a large and experienced workforce in Great Falls, Montana, and the coal project may provide hundreds, if not thousands, of new, high-paying jobs for the local economy (according to the U.S. Bureau of Labor Statistics, the average annual wage in the mining industry in Montana was $70,779 in 2008, or 122 percent higher than the average wage in the state).
American Power Corp. is a publicly traded, dynamic energy company based in Denver, Colorado. The Company was established with the focus of acquiring near-term, large scale coal projects in close proximity to national transportation links. American Power envisions developing its large coal resources to support electricity generation.
James River Coal Company (Nasdaq:JRCC) was formed in 1988 through the purchase of McCoy Elkhorn and Bell County from Transco Coal Company. In 1992 JRCC acquired the operations of Johns Creek Coal Company and the Bevins Branch Preparation Plant, both of which are now operated under McCoy Elkhorn. In June of 1995 the Leeco and Bledsoe operating companies were acquired through Transco Coal Company. The Blue Diamond operating company was purchased in 1998. In 1999, JRCC acquired Shamrock Coal Company, which added mines, reserves, and a preparation plant and the Clover loadout facility to the Bledsoe complex. Triad was purchased in May of 2005.
JRCC mines, processes and sells bituminous, steam- and industrial-grade coal through six operating subsidiaries located throughout eastern Kentucky and southern Indiana. As of December 31, 2009, JRCC’s six mining complexes included 14 underground mines, 10 surface mines and 10 preparation plants, five of which have integrated rail loadout facilities and three of which use a common loadout facility at a separate location.
In 2009, JRCC produced 9.8 million tons of coal (including 0.3 million tons of coal produced in their mines that are operated by contract mine operators) and JRCC purchased another 0.1 million tons for resale. Of the 9.5 million tons JRCC produced from Company-operated mines, approximately 66% came from underground mines, while the remaining 34% came from surface mines. In 2009, JRCC generated revenues of $681.6 million. Approximately 92% of JRCC’s 2009 revenues were generated from coal sales to electric utility companies and 8% came from coal sales to industrial and other companies.
Alpha Natural Resources, Inc. (NYSE: ANR), a leading U.S. coal producer, reaffirms its commitment to disciplined growth and its long-term strategic intention to further participate in the global growth markets for both metallurgical and thermal coal.
Based upon a strategic analysis concluded in early 2010, Alpha remains positive with respect to the global metallurgical coal market over the next several years based on its belief that the market is structurally undersupplied of high quality, hard coking coal. Alpha also believes that substantial opportunity exists for seaborne thermal coal production sources strategically placed to serve the growth markets of the world, given that global demand is forecast to increase by more than 2 billion tons annually between now and 2030.
Following the successful merger with Foundation Coal in 2009, Alpha has consistently stated its intention to continue to successfully grow the company in a strategically sound and thoughtful manner, both in the U.S. and abroad, as it has since its inception in late 2002 and its IPO in February 2005. To that end, Alpha has engaged in commercial and strategic discussions with various parties throughout the world who are in a position to expand Alpha’s participation in these long-term global growth markets. It would be inappropriate to disclose the content of such discussions, which are typically exploratory in nature and subject to confidentiality agreements, and there is no assurance that any such discussions will result in a transaction.
“Throughout our history, Alpha has demonstrated a disciplined and thoughtful approach to growth, with the goal of achieving scale, diversification and consistent free cash flow generation,” said Kevin Crutchfield, Alpha’s chief executive officer. “Our success to date has culminated in Alpha’s strong liquidity position, low leverage and strong balance sheet, and our shareholders can expect no less from Alpha going forward. We will continue to prudently pursue growth opportunities, both through organic development and through strategic acquisitions, with the goal of enhancing shareholder value over the long-term. As we have in the past, we will continue to regularly inform our stakeholders about our strategic views, and we will share details of Alpha’s future growth opportunities as appropriate.”
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