The Canadian producer, whose shareholders approved a name change during an annual and special meeting, said it was all about timing.

"With current operations performing better than expected along with the expectation of higher coal prices in the near term, we believe the time is right to expand our operations,” Western Coal president and chief executive John Hogg said.

He noted the stripping ratio at the company’s Wolverine operation, for example, was 20% lower than the fiscal 2009 average while cash costs were now just over half at $C100 per tonne.

Among the projects will be the expansion of the Brule mine to 2 million tonnes per annum, while an underground operation at Perry Creek will be developed to help expand Wolverine to almost 3Mtpa.

Western Coal also plans to recommence pulverized coal injection and hard coking extraction from the Willow Creek complex, which will be expanded to 1.8Mtpa.

Two of its West Virginia mines, Maple Coal and Gauley Eagle, will receive new equipment that will help push annual production levels to 1.8Mt and 1.4Mt respectively.

Finally, Western Coal will help increase output from Energybuild Group, in which it holds a 50.6% interest, to 750,000tpa.

Brule and Willow Creek development work is expected to begin in the first half of next year.

“This allows Western to take advantage of the recovery in world metallurgical coal markets, with spot prices for coking coal now over $US170 per tonne,” the company noted.

“Assuming the continued recovery in steel demand, the company expects next year contract coal prices to be significantly higher.”