Coal Producer and exporter Walter Energy Inc. (WLT) announced the start-up of production at its Mine No.7 in East Longwall. The company started the Longwall expansion program in 2005.

The $175 million expansion is expected to generate an additional production of about 2.0 million tons of in 2010 and up to 3.5 million tons in 2012. The additional production will increase Walter Energy’s rated capacity for premium coking coal to approximately 9.5 million tons in 2012. The expansion covers an area of approximately 19.5 square miles and has sufficient reserves for approximately 20 years of production.

Mine No. 7 produces some of the highest quality coking coal in the world. The company believes that the expansion of the mine to an annual capacity in excess of 6 million tons makes it the largest low-volume hard coking coal mine in North America. It believes the expansion is ideally timed to meet expected growth in demand for premium, low-volume hard coking coal.

Zacks Investment Research

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