July 31, 2009 was a transformative day for Alpha Natural Resources, merging with Foundation Coal, which like Alpha was one of America’s premier coal suppliers. It was an all stock merger with a transaction value of approximately $2.0 billion and would have generated pro forma 2008 revenues of $4.2 billion. It becomes America’s top metallurgical coal supplier with over 60 mines and 14 coal preparation plants. Its reserves amount to 2,300 Mt of coal in four coal-producing basins.

Combined 2008 output was 84.35 Mt of which 44.62 Mt (53%) came from the Powder River Basin (PRB – all surface mined), 24.3 Mt came from Central Appalachia and 15.42 Mt came from Northern Appalachia. Surface mines in the East produced 10.52 Mt and of the underground production, 16.7 Mt was from continuous miner sections and 12.43 Mt was longwall production. Coal sales were 90 Mt in 2008, of which 77.8 Mt were steam coal and the rest was metallurgical.

Alpha says that “by combining the energy of two high-performing organisations, one strong entity has emerged, with size, scale and scope, and an intense ambition to be a world-class energy company. Alpha Natural Resources becomes the third-largest coal producer in America, providing:

• Employees with a stable work environment and the opportunity to develop professionally;
• Customers with the highest level of service, a diversified selection of products and innovative technology;
• Investors with an attractive opportunity to invest in an organization with an outstanding financial  track record, a strong balance sheet and excellent liquidity, and promising synergy opportunities