The total is versus its third-quarter 2007 net loss of $9.7 million. However, revenues for the company increased for the period ended September 30, totalling $151.8 million – up from $130.5 million a year ago.

James River officials said its results did include a gain of $6.1 million, which was related to the curtailment of its defined benefit pension plan.

Company chairman Peter Socha called the overall quarter “mixed” and noted it was impacted by higher costs in central Appalachia thanks to raw materials charges and a changing regulatory environment.

“We were able to successfully resolve several of the regulatory issues and price escalation for raw materials appears to be easing,” he said.

“Our Midwest operations had a good quarter and the mines were able to perform at a very high level [and] we were also successful with our contracting activities in the Midwest this quarter.”

On a positive note, the producer said its central Appalachian (CAPP) coal supply contracts for 2007 and 2008 were winding down.

“Our new, higher priced CAPP contracts beginning in the first quarter of 2009 will, in many cases, be at prices that are double the level of this year,” Socha noted.

“A substantial portion of our Midwest production currently under low-priced contracts will be available for repricing at market as we approach the end of those contracts in 2009."

The company concurred with the sentiment of so many other US coal producers that financial market problems have been widespread and have not left the energy mix, including coal, without some impact. That volatility and the issues which influence it, Socha said, extend beyond coal’s supply and demand matrix.

“These factors include tighter credit conditions on several large traders of financial coal contracts,” he said.

“We expect that the impact of these factors will be reduced during the next several months and the fundamentals of the market will, once again, be the dominant driver of future coal prices.”

James River also took the opportunity to highlight its mines’ safety performance over the third period, including the Sentinels of Safety honour which two of its operations earned.

Blue Diamond Coal's Mine No. 77 was chosen in the large underground coal mine category and its Triad Mining Freedlandville East Mine earned the top award for small surface coal mines.

Additionally, James River said, Bledsoe Coal's Beechfork Mine won the Kentucky Coal Association/Kentucky Environmental and Public Protection Cabinet Safety award.

“Our employees have worked very hard and deserve this recognition for their diligent efforts to make safety our number one priority,” said chief operating officer Coy Lane.

“We will continue to work hard to provide our employees with a safe work environment."