15.05.2008 14:08:00
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Emerald Mine Production Reduced Due to Roof Fall
Foundation Coal Holdings, Inc. (NYSE:FCL) today announced that
production at the Emerald Mine, operated by its affiliate Emerald Coal
Resources, LP in Northern Appalachia, is running at a reduced rate due
to anomalous geological conditions, which caused a roof fall impacting
longwall advance. There has been no impact to coal production in the
continuous miner development sections. Based on current information, the
company expects the roof fall to curtail longwall production for
approximately 14 to 17 days, resulting in estimated reduced production
of approximately 210,000 to 240,000 tons from the mine in the second
quarter. As a result of the roof fall, Emerald Coal Resources, LP
declared force majeure on coal shipments from the Emerald Mine.
Kurt Kost, President and Chief Operating Officer, said, "We
are working to remedy the issue in a safe and diligent manner. Although
this situation will diminish production in this quarter, we anticipate
by year-end making up all or a substantial portion of this shortfall.
Last year we made the decision to install a second longwall at Emerald
to minimize impacts when unanticipated geological challenges occur. The
original longwall at Emerald is currently being re-built and will be
placed back in service later this year.”
The company said that the unproduced tonnage will impact financial
results for the second quarter.
About Foundation Coal
Foundation Coal Holdings, Inc., through its affiliates, is a major U.S.
coal producer with 13 coal mines and related facilities in Pennsylvania,
West Virginia, and Wyoming. Through its subsidiaries Foundation Coal
employs approximately 3,000 people and produces approximately 72 million
tons annually, largely for utilities generating electricity. Foundation’s
corporate offices are in Linthicum Heights, Md.
Forward-Looking Statements
Certain statements relating to the future prospects, developments,
business strategies, analyses and other information that is based on
forecasts of future results and estimates of amounts not yet
determinable are forward-looking statements (as such term is defined in
the Private Securities Litigation Reform Act of 1995) which can be
identified as any statement that does not relate strictly to historical
or current facts. The company has used the words "anticipate,"
"believe," "could," "estimate," "expect," "intend," "may," "plan,"
"predict," "project" and similar terms and phrases, including references
to assumptions, to identify forward-looking statements. These
forward-looking statements are made based on expectations and beliefs
concerning future events affecting the company and are subject to
uncertainties and factors relating to the company’s
operations and business environment, all of which are difficult to
predict and many of which are beyond the company’s
control, that could cause the company’s actual
results to differ materially from those matters expressed in or implied
by these forward-looking statements. These factors include, but are not
limited to: market demand for coal, electricity and steel; weather
conditions or catastrophic weather-related damage; the company’s
production capabilities; timing of reductions or increases in customer
coal inventories; long-term coal supply arrangements; environmental
laws, including those directly affecting the company’s
coal mining and production, and those affecting the company’s
customers' coal usage; regulatory and court decisions; railroad, barge,
trucking and other transportation performance and costs; assumptions
concerning economically recoverable coal reserve estimates; employee
workforce factors; changes in postretirement benefit and pension
obligations; the company’s liquidity, results
of operations and financial condition. The company advises investors
that it discusses additional risk factors and uncertainties that could
cause Foundation Coal Holdings, Inc. actual results to differ from
forward-looking statements in the company’s
Form 10-K filed with the Securities and Exchange Commission ("SEC")
under the heading "Risk Factors". The investor should keep in mind that
any forward-looking statement made by the company in this news release
or elsewhere speaks only as of the date on which the company makes it.
New risks and uncertainties come up from time to time, and it is
impossible for the company to predict these events or how they may
affect the company. The company has no duty to, and does not intend to,
update or revise the forward-looking statements in this news release
after the date of issue, except as may be required by law. In light of
these risks and uncertainties, the investor should keep in mind that any
forward-looking statement made in this news release or elsewhere might
not occur.
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