About Alpha  We are a leading Central Appalachian coal producer that also has significant operations in Northern Appalachia. Our reserves primarily consist of high Btu, low sulfur steam coal that is currently in high demand in U.S. coal markets and metallurgical coal that is currently in high demand in both U.S. and international coal markets. Steam coal is primarily purchased by large utilities and industrial customers as fuel for electricity generation, and metallurgical coal is used primarily to make coke, a key component in the steel making process. We produce, process and sell steam and metallurgical coal from eight regional business units supported by 33 active underground mines, 24 active surface mines and 11 preparation plants located throughout Virginia, West Virginia, Kentucky and Pennsylvania . We are also actively involved in the purchase and resale of coal mined by others, the majority of which we blend with coal produced from our mines to create customized products for our customers.
Alpha's History
Alpha was formed in 2002 by affiliates of First Reserve Corporation, a private equity firm, and our management. We acquired the majority of the Virginia coal operations of Pittston Coal Company, a subsidiary of The Brink's Company, in December 2002. On January 31, 2003, we acquired Coastal Coal Company, and on March 11, 2003, we acquired the U.S. coal production and marketing operations of American Metals and Coal International. In connection with our acquisition of the Coastal Coal Company, we acquired an overriding royalty interest in certain properties located in Virginia and West Virginia owned by El Paso CPG Company. Effective February 1, 2003, we sold the overriding royalty interest to affiliates of Natural Resource Partners, L.P. (NRP) and effective April 1, 2003, we also sold substantially all of our fee-owned Virginia mineral properties to NRP in a sale/leaseback transaction. On November 17, 2003, we acquired Mears Enterprises, Inc. and affiliated entities. Alpha continues to grow through acquisitions. For instance, on April 1, 2004, we acquired substantially all of the assets of Moravian Run Reclamation Co., Inc., including four active surface mines and two additional surface mines under development, operating in close proximity to and serving many of the same customers as our AMFIRE business unit located in Pennsylvania. On May 10, 2004, we acquired a coal preparation plant and railroad loading facility located in Portage, Pennsylvania and related equipment and coal inventory from Cooney Bros. Coal Company and an adjacent coal refuse disposal site from a Cooney family trust. On October 13, 2004, our AMFIRE business unit entered into a coal mining lease with Pristine Resources, Inc., a subsidiary of International Steel Group Inc., for the right to deep mine a substantial area of the Upper Freeport Seam in Pennsylvania. Alpha completed its largest acquisition ever in October 2005 when it acquired the Nicewonder Coal Group. The Nicewonder companies include three surface mines and a road construction and coal recovery business in southwestern Virginia and southern West Virginia. In May 2006, Alpha completed the acquisition of certain coal mining operations in eastern Kentucky from Progress Fuels Corp. Collectively the acquired businesses control 73 million tons of coal reserves. In December of that year, a subsidiary company, Palladian Lime LLC, acquired a 94% ownership interest in Gallatin Materials LLC, a start-up lime manufacturing business in Verona, Ky. The first rotary pre-heater lime kiln started up in the first quarter of 2008, and is producing lime primarily for coal burning utilities as a flue gas scrubbing agent and for steel producers for use as flux in electric arc and basic oxygen furnaces. In June 2008, Alpha acqquired the Mingo Logan-Ben Creek coal mining assets in West Virginia from Arch Coal Inc. Mingo Logan consists of coal reserves, one deep mine and a load-out and coal processing plant. |
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