January 30, 2011 in Nation/World

Massey Energy, in slump, gets sold

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NEW YORK – Massey Energy Co., struggling with losses after an explosion that killed 29 workers at a West Virginia coal mine last spring, agreed Saturday to be taken over by Alpha Natural Resources Inc.

Alpha is paying $7.1 billion in cash and stock for Massey, the nation’s fourth-largest coal producer by revenue. Massey operates 19 mining complexes in Virginia, West Virginia and Kentucky including the Upper Big Branch mine where the April 5 disaster occurred.

In an interview, Alpha CEO Kevin Crutchfield said the acquisition will offer greater access to international markets. Shortages of coal for making steel have driven up prices around the world, a trend Alpha hopes to capitalize on.

“We sell into 20-some countries now and that will increase significantly,” Crutchfield said.

Asked about safety concerns at Massey’s operations, Crutchfield said, “We try to let our performance speak for itself. Nobody is perfect, but we have a very good record regarding safety and a good working relationship with regulators.”

He added, “Massey has a lot of great people who want to do the right thing.”

A sale of Richmond, Va.-based Massey was expected even before the sudden retirement last month of Don Blankenship, the company’s CEO. He was the strongest advocate for remaining an independent company on Massey’s board.

The company’s losses since the disaster were another factor leading to its sale. Massey lost a total of $130 million in the second and third quarters of last year.

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