The acquisition includes reserves and equipment adjacent to its operating affiliate, Pax surface mine in West Virginia.

According to Foundation Coal development and information technology senior vice-president Jim Olsen the advantages of combining the new asset with the existing operation was significant.

“The properties are close to one another and utilise similar mining methods and equipment, which will provide the operation with flexibility at reduced overhead. The fact that all production can move through the new rail loadout is equally important," he said.

The loadout's receiving and handling capacities will easily absorb near- and long-term production increases realised from the acquisition and eliminate significant per-ton trucking costs, Foundation said.