During the year the company’s net assets more than doubled to £55.1 million. The company’s West Virginia properties were estimated by Marshall Miller & Associates to contain more than 44 million tons of recoverable proven and probable coal reserves with significant potential for expansion.

West Virginia coal production began in January 2006 and sales to the local thermal market commenced in March 2006 at a production rate of 25,000t per month. It has since grown to 40,545t per month.

Revenue from coal sales was £2.9 million.

During June a new continuous miner was delivered to the Silo Mains underground mine and refurbished original units are expected to be delivered by the end of the year.

At the Gauley Eagle operation, a memorandum of understanding has been signed with local leaseholders to gain access to about 7000 acres of additional contiguous mining lands. Negotiations have been finalised for the lease of the first 800 acres.

Control on all operations has been assumed replacing contract miners with company personnel, resulting in significant increases in productivity, Coal International said.

“With the completion of the acquisition of three coal properties in West Virginia and the investment in coal producing companies in Wales and British Columbia, Coal International is on track to achieve its goal of becoming a global coal production and investment company,” Coal International chief W Durand Eppler said.