The Kanawha Circuit Court upheld a decision previously made in March by the state's Surface Mine Board allowing the construction of the silo. The West Virginia Department of Environmental Protection appealed shortly after the SMB's verdict.
Goal's Coal, located in Sundial, is an entity of Massey Energy.
The silo's construction, Massey said, will also allow for the reduction of coal dust in the air near the facility because the coal will now be enclosed.
"The ruling of the circuit court means that we can continue our efforts to further improve environmental performance at the site," company chief Don Blankenship said.
"However, given the concern that this case generated in the community, we will not construct the silo until we have met with the governor's office and with officials from Marsh Fork Elementary School," adding that the operator wishes to collect people's input first and allow an opportunity for it to explain the benefits the silo will have from an environmental perspective.
No construction schedule was provided by Massey.
The silo's permit was originally submitted to the DEP in June 2005 but then revoked that July when the agency discovered problems with submitted maps. The plant was also the site of several anti-coal rallies by citizen groups opposing Massey, the facility and its expansion plans.