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Coal Company Announces Plan for New Coal Mine in Taylor County

Posted on: Monday, 8 August 2005, 03:01 CDT

More than 300 jobs could be headed to north central West Virginia if International Coal Group receives the necessary permits for a new mine in Taylor County.

The coal company, owned by New York billionaire Wilbur Ross, is planning to invest $200 million to open the new underground mine near Grafton. It will be the first new underground coal mine developed in north-central West Virginia in several decades.

"The news of International Coal Group possibly opening mines within Taylor County is a beacon of hope to the economic climate of the county. The creation of 250 jobs is great news to Taylor County" said Chad Swick, Taylor County economic development director.

If the permitting process goes according to plan, ICG officials said construction of the mine could begin in 2007 and production could start in 2008.

In addition to the permitting process, ICG may face a second challenge in opening the new mine - finding skilled laborers. Shortages of skilled coal miners are starting to crop up throughout the Appalachian region and operations in states, such as Pennsylvania, have looked to woo West Virginia's miners.

After a 20-year slump in coal, the natural resource has made a comeback in recent years. But the lack of hiring in the past two decades, an increase in technology that eliminated many mining jobs and an aging miner population have led to the industry's labor shortages.

Several companies have increased wages and offered training programs to find a new generation of miners. And in some cases, companies have upped their creativity in recruitment. Last summer, Massey Energy rented a banner to be flown over the beaches at Myrtle Beach, S.C. trying to recruit former West Virginia miners. Myrtle Beach is considered one of the top vacation spots for West Virginians.

Gene Kitts, senior vice president of mining services for ICG. has said his company expects recruiting to be a challenge. The company likely will work with state officials and the West Virginia Coal Association to seek out qualified miners.

ICG was formed in October 2004 after Ross, through his investor group, WL Ross & Co., acquired the principal assets of Horizon Natural Resources, including operations in West Virginia. Last month, ICG announced it would be moving its headquarters from Ashland, Ky., to Charleston.

FASTfacts

Here is a quick look at International Coal Group:

* Company founded - October 2004

* Holdings Include - IC6 Addcar System, IGG East Kentucky, IGG Eastern, JCG Hazard, IGG Illinois, ICG Knott County, ICG Natural Resources and ICG, LLC

* Primary states of operation - West Virginia, Kentucky and Illinois

* Coal sales - in 2004, the company sold 18.4 million tons nationwide.

* Web site - www.intlcoal.com

* Company founder - Wilbur L. Ross, New York financier who founded International Steel Group, the company that purchased Weirton Steel in 2004. ISG subsequently merged with Mittal Steel.

Copyright State Journal Corporation Jul 15, 2005

Source: State Journal, The

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