United Coal, subsidiary of United Company, re-entered the coal industry in 2004 after purchasing assets in Kentucky and West Virginia.

Zervos, who recently formed GEM to pursue coal mining acquisition opportunities in Central Appalachia, has bought with him his entire GEM team, all of whom have been retained as executive officers. Zervos previously held positions with Drummond Company, Arch Coal and US Steel Mining.

Vice presidential appointments went to Kenneth McCoy in operations, William Wells in engineering and strategic planning, Robert McAtee in human resources and safety, and Charles Toppings in maintenance systems.

United Company president Jeffrey Keenan said the GEM team would add the leadership and management depth required to handle growing operations in eastern Kentucky and northern West Virginia.

Zervos said the opportunity for GEM and United Coal to pursue coal development in Central Appalachia under one umbrella was too good an opportunity to pass up.

"The United Coal name is an industry brand name, and one that provided us with a recognised platform to build a significant presence in Central Appalachian production,” Zervos said.

“The United Company and United Coal have been successful and opportunistic buyers of coal assets in the past, and joining them will allow us to capitalise on our growth strategy and pursue more acquisition opportunities.

“We look forward to continuing to grow production from the Sewell and Kittanning seams at Carter Roag Coal Company to take advantage of the opportunities in the metallurgical markets, and to improve the steam coal operations at Sapphire Coal Company where the Company mines the Whitesburg/Elkhorn/Amburgy seams in eastern Kentucky."

Idled for more than six years, Carter Roag produced its first ton of Sewell coal in December 2004, and shipped its first train in February this year. Zervos said the operation would add six additional mining units to the one currently operating.

"The Sewell seam is renowned for its excellent met and steam coal characteristics, and we have an extensive reserve base and a long term plan for that operation," he said.

Zervos was likewise optimistic about Sapphire Coal’s prospects. "United has done a great job of restoring a property known for its high-Btu steam coals. Through additional exploration and improvements in production, we expect to increase Sapphire Coal Company's current annual output of about 1.5 million tons."