Alliance subsidiary Webster County Coal has temporarily idled the room and pillar mine located near Providence, Kentucky.

The company said the fire originated from a diesel supply tractor located in an area near two of the mine’s six active mining areas.

After detection of the fire, Webster County immediately implemented fire suppression efforts and, with the exception of fire fighting personnel, evacuated the mine. All employees are accounted for and no injuries were incurred during the evacuation.

Webster County are now working with federal and state safety officials, which have

representatives on site, to implement a plan to isolate and extinguish the fire

and determine when coal production can be resumed at the mine.

Webster County is temporarily sealing two main underground passageways and one of four mine portals in order to cut off oxygen to the fire. In addition, crews are drilling multiple boreholes into the mine. These holes will be used to take air readings, assess atmospheric conditions and pump carbon dioxide and nitrogen into the mine to extinguish the fire.

Once the fire is extinguished and the atmosphere is inert, mine rescue teams will re-enter the mine to begin the process of recovering the mine and returning it to production.

“The safety of our employees is always our highest priority. Our Dotiki employees responded quickly and appropriately to this situation and are working tirelessly to resume safe operations at the earliest possible date. Despite these best efforts, however, it is possible that normal operations will remain suspended for some time,” said senior

vice president of operations Charles Wesley.

“Even though Alliance had just achieved record financial results last month, the Partnership’s results will be adversely impacted until production resumes at the Dotiki mine. We do not believe, however, that the current circumstances will have a material long-term impact on the Dotiki mine or the Partnership,” he said.

Alliance is initiating an analysis of all possible alternatives to mitigate potential losses arising from the fire. This analysis will include a review of its commercial property (including business interruption) insurance policy, which provides for a deductible of $3.5 million and ten% coinsurance.

Alliance said until such analysis is completed it was premature to determine the specific impact the Dotiki mine fire incident may have on the financial performance of Alliance.

The Dotiki mine is an underground mining complex that employs approximately 360 workers. The mine produces low moisture, high sulfur coal from the Kentucky No. 9 coal seam utilizing continuous mining units and room-and-pillar techniques. Production from the mine during 2003 was approximately 4.9 million tons.