  1 Foundation Coal - Foundation Coal - William N. Poundstone Lecture William N. Poundstone Lecture A. Scott Pack, Jr. A. Scott Pack, Jr. President, Foundation Energy Sales, Inc. President, Foundation Energy Sales, Inc. College of Engineering and Mineral Resources Department of Mining Engineering West Virginia University Mining the Past…Powering the Future April 23, 2008 Exhibit 99.1 |
 2 Got Coal? Hat Kohle erhalten? Carväo recebido? Bak kömür ¿Tienes carbon? Got coal, eh? Heeft u steenkool? Charbon obtenu? Il carbone preso? Gad Koyal? Sabaki sekitan? India Japan Italy China Germany Portugal Netherlands Canada Spain Turkey France |
 3 Statements in this presentation which are not statements of historical fact are “forward-looking statements” within the “safe harbor” provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by, Foundation Coal Holdings, Inc. at the time this presentation was made. Although Foundation Coal Holdings, Inc. believes that the assumptions underlying such statements are reasonable, it can give no assurance that they will be attained. Factors that could cause actual results to differ materially from expectations include the risks detailed under the section “Risk Factors” in the company’s Form 10-K filed with the Securities and Exchange Commission. FORWARD-LOOKING STATEMENTS |
 4 Presentation Overview Foundation Coal background Strong safety record Diversified operations Attractive asset base Positive outlook for organic growth Tremendous opportunities for skilled labor Industry Overview Abundance of coal in the US New US power plants US historical and forecasted demand Global historical and forecasted demand Summary |
 5 Foundation Coal Highlights Size - fourth largest U.S. producer by volume, operating 13 mines in WY, PA, and WV Current productive capacity of 76 mm tons per year – 55 mm PRB – 14 mm NAPP – 7 mm CAPP Markets - domestic and export steam and metallurgical coals Only producer with major presence in both NAPP & PRB Focus on safety and environmental compliance Focus on people, productivity, and process improvement |
 6 A Commitment to Safety Incident Rates of Non-Fatal Occupational Injuries by Industrial Category Source: Bureau of Labor Statistics, 2006; Foundation Coal, 2007 |
 7 Diversified Operations |
 8 NAPP Operations 2 longwalls, 4 continuous miners High-Btu, mid-sulfur steam coal Batch-weigh loadout (NS & CSX) 636 employees 1 longwall, 4 continuous miners High-Btu, mid-sulfur steam coal 17-mile railroad to river dock 679 employees Cumberland Emerald |
 9 CAPP Operations Eagle Butte 2 underground mines, each continuous miner-equipped High-quality metallurgical coal Truck to barge or rail (CSX) 218 employees Continuous miner-equipped Low sulfur steam coal NS-served 351 employees Kingston Resources Rockspring Development |
 10 CAPP Operations (Cont.) Eagle Butte 4 underground mines, each continuous miner-equipped Low sulfur steam and industrial coal Truck to barge or rail (CSX) 209 employees 2 surface mines, 1 loader/truck & 1 excavator/loader/truck equipped Low sulfur steam coal, high- quality export metallurgical coal Rail-served (CSX/RJCV-Pax, NS- Paynter Branch) 116 employees Laurel Creek Co. Pioneer Fuels |
 11 PRB Operations Belle Ayr Eagle Butte BNSF/UP rail access 8,500 Btu, 0.60 Lb. SO 2 /mmbtu BNSF rail access 8,400 Btu, 0.80 Lb. SO 2 /mmbtu – Truck/shovel mining method – 587 total employees |
 12 The Need for Skilled Labor There are incredible opportunities for new graduates, as a large portion of the industry approaches retirement. The next generation of industry employees will have the following characteristics: Success oriented Good communicator Sound decision making Continuous improvement apostle Promote teamwork Problem solving Openness to change Avid learner Customer focus Conflict management Thick skin |
 13 Abundance of Coal Source: EIA and USGS •Nearly 4 trillion tons of coal are beneath US soil •An additional 1.3 trillion tons of coal have recently been announced to exist beneath North Dakota, according to the NDGS. •Total coal reserves in the US amount to a roughly 4500 year supply at current burn rate. •Not all coal in the ground can be economically extracted using today’s technology. |
 14 Delivered Fuel Prices to Plants in the US Source: EIA and FERC Forms 423 •Delivered coal prices have been relatively stable and low. •The relative stability of delivered coal prices has led to constant and increasing demand. 0 200 400 600 800 1000 1200 1990 1995 2000 2005 2010 Year All Coal based plants Natural Gas Petroleum based fuel |
 15 Sources: Global Energy, EIA WEAK STRONG STRENGTHENING STRONG WEAKER STRONG STRONG AND SUSTAINABLE PRICING ENVIRONMENT Strengthening Gas Prices Declining Inventories at U.S. Utilities Strong Economic Outlook New Coal-Fired Generation Capacity Decline in Eastern U.S. Coal Production International Demand Growth $- $1 $2 $3 $4 $5 $6 $7 $- $2 $4 $6 $8 $10 $12 $14 Eastern Coal Western Coal Natural Gas Eastern coal is BS Barge 12,000 Btu |
 16 High Prices = Increased Production? High coal prices may not necessarily translate to significant short- term increase in production. Difficulty in obtaining permits Environmental issues MINER Act Safety regulations Adverse geological conditions Increase in input mine costs Labor shortage |
 17 U.S. Coal Consumption by Basin 2006 |
 18 US Capacity Additions: 2000 - 2021 •Early 2000’s over-build of gas-fired capacity coming to an end. •Projected coal- fired capacity will grow over next 6 years. •Typical life of a coal plant is 50 years. Source: Global Energy 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 Year Coal Gas Nuc Other Petro Renew Water |
 19 US Coal Plant Projects Underway Source: Global Energy •US coal plants under construction are expected to burn primarily PRB, CAPP and NAPP coal. •Foundation Coal is well positioned to supply these new plants. |
 20 Coal is the Fastest Growing Fuel in the US for Electricity Generation Coal 1.6% Petroleum 0.7% Natural Gas -1.5% Nuclear Power 0.6% Renewables 2.0% 2008 - 2030 CAGR (%) US Electricity Generation Growth through 2030 (Billions of Kilowatt-Hours) -400 -200 0 200 400 600 800 1000 Coal Petroleum Natural Gas Nuclear Power Renewables Source: EIA Annual Energy Outlook, 2008 •Today 50% of the electricity in the US is fueled by coal. •By 2030, the EIA forecasts coal will generate over 57% of US electricity. |
 21 Past and Projected US Energy Consumption (All Uses) Source: EIA Annual Energy Outlook 2008 Coal •As the only abundant, domestic energy resource, coal consumption is expected to continue to grow. •Renewables are also expected to grow rapidly, but cannot keep pace with coal’s growth, according to the EIA. - 5 10 15 20 25 30 35 40 45 50 Liquids Natural Gas Coal Nuclear Electricity Hydroelectricity Renewable Excluding Hydro History Projections |
 22 Coal is the Fastest Growing Fuel in the World 0 50 100 150 200 250 300 Liquids Natural Gas Coal Nuclear Other 2004 2010 2015 2020 2025 2030 World Total Energy Consumption through 2030 (Quadrillion Btu) •By 2030, Global coal consumption is expected to rise by nearly 85 QBtu, a 74% increase •Oil is next at 71 QBtu, a 42% increase. Source: EIA International Energy Outlook 2007 |
 23 World Demand for Coal 0 10 20 30 40 50 60 70 80 90 100 US OECD Europe OECD Asia Russia China India 2004 2010 2015 2020 2025 2030 •China accounts for the largest growth at 3.3% annually. •India is expected to grow at 2.5% annually. •US growth is forecasted to increase by 1.6% annually. World Demand for Coal through 2030 (Quadrillion Btu) Source: EIA International Energy Outlook 2007 |
 24 Impact of Increasing Global Demand Asian Demand is key •Asia naturally draws from Australia, but export growth is overwhelming infrastructure •Asia now drawing thermal coal from South Africa, historically a supplier for Europe •Europe is relying increasingly on coal from the Americas •US exports in 2007 were 59.1 MMtons, a 19% increase YOY •US exports should rise, tightening supply: 75-80 MMtons projected in 2008 |
 25 CATALYSTS DRIVING THE MARKET Current Market Fundamentals • Favorable US currency • Relatively high natural gas prices • Favorable ocean freight rates • Close to normal domestic stockpiles • Lead time to increase U.S. production Recent Events Have Accelerated International Market Tightness • China – Projected net importer beginning in 2008 • China – Curtailed coal exports through February/March • India – Utility stockpiles low • Venezuela – State-ordered contract re-pricing • Australia – January/February monsoons resulted in multiple force majeures • South Africa – Production issues, low utility inventories & power outages |
 26 Summary Coal is critical for US and global energy needs Half of US electricity is generated from coal 41% increase in US coal demand by 2030 74% increase in global coal demand by 2030 Foundation Coal has an excellent industry position Among the largest producers – fourth by volume Nationally diversified – only producer with a major presence in NAPP and PRB Need for skilled labor will be critical for the industry Positive outlook for growth Many opportunities available for next generation of industry professionals |
 Mining the Past…Powering the Future |