The coal asset transaction includes 14.4 million tons of proven reserves that have been classified as high quality, Massey officials said.
They are strategically located near the producer’s Knox Creek, Bandmill and Logan County mining operations in central Appalachia.
The company said the purchase “will provide significant cost advantages for Massey when they are developed”.
A request for a development timeline as well as other details on the deal could not be given because no further information is being released, a spokesperson indicated.
"We continue to execute our 'Position to Win' strategy in central Appalachia by controlling a dominant share of the most valuable coal reserves in the country," Massey chairman Don Blankenship said.
"This transaction extends the advantage we hold over our competitors in terms of total reserve tons and reserve quality, and will likely lead to additional cost advantages as well."
Once the pending conditions of the now-closed purchase have been satisfied, Massey has agreed to purchase 32Mt of additional coal reserves from the security company, which will give the producer a total of 36.4Mt.
The price tag on both portions of the deal is $10 million in cash as well as the assumption of $5 million in related leasehold and reclamation liabilities.
Massey currently holds 2.3 billion tons of proven and probable reserves.
