Alpha to Build Coal Import Facility [BlackDiamond]

Alpha Natural Resources to Invest in New Coal Import Facility

ABINGDON, Va., July 14 /PRNewswire-FirstCall/ -- Alpha Natural Resources, Inc. a leading Appalachian coal producer, today announced that its subsidiary, Alpha Terminal Company, LLC, and its other interested partners are pursuing a $20-$25 million investment in the construction of a new coal import facility at Dominion Terminal Associate's existing export terminal in Newport News, Virginia. Final engineering should be completed by the fall of 2005, at which point the total cost of the project will be approved by the participating partners. DTA has obtained the necessary permits, and construction of the import facility could commence by late 2005, with a targeted completion date of early 2007. Alpha Terminal is the largest owner in DTA, holding a 32.5% interest in a partnership with subsidiaries of Peabody Energy (30%), Dominion Energy (20%) and Arch Coal (17.5%).

"The addition of import capability at DTA will position Alpha with enhanced sourcing flexibility to meet future changing needs of our customers," said Michael Quillen, Alpha's President and CEO. Constructed in 1982, DTA's 22 million-ton annual capacity export terminal provides state-of-the-art unloading/transloading equipment with ground storage capability, enabling producers to custom blend export products without disrupting mining operations. The new import facility is designed to interconnect with DTA's existing facilities to enable imported coals to be off-loaded, stored, reclaimed/blended and shipped pursuant to the specific quality needs of its domestic customer base. The facility is designed to use the existing outbound silos to blend coals, including imported coals, with domestic coals.

About Alpha Natural Resources

Alpha Natural Resources is a leading producer of high-quality Appalachian coal. Approximately 94 percent of Alpha's reserve base is high Btu coal and 89 percent is low sulfur, qualities that are in high demand among electric utilities which use steam coal. Alpha is also one of the nation's largest producers and exporters of metallurgical coal, a key ingredient in steel manufacturing. Alpha currently operates more than 60 mines and 11 coal preparation and blending plants in four states.