Exhibit 99.3
Surface Mining at Massey Energy
Michael K. Snelling
Vice President, Surface Operations September 27, 2005
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MEE Surface Operations Current Status
Largest Surface Mining Company in CAPP Massey Operates 16 Surface Mines Twelve Mines in WV
Four Mines in Eastern Kentucky Every Type of Mining – Contour to MTR Seven Highwall Miners
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MEE Surface Operations Current Status
Over 150 MM Tons Surface Reserves Permitted
Over 250 MM Additional Tons In Process Unprecedented Surface Mine Growth in CAPP
Sound Operational Performance
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Surface Production 1996 thru 2005 (est.)
MEE Surface Mine Growth
Tons (000)
25,000 20,000 15,000 10,000 5,000 0
Surface Mine Highwall Miner Total Surface Linear (Total Surface)
1996 1997 1998 1999
2000
2001 2002
2003
2004 2005
Est.
Year
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Major Expansions Since Q4 2003
Includes:
Over Twenty (20) Major Projects in Total Six (6) New Surface Mines Extensive Equipment Additions Multiple Equipment Upgrades Coal Handling Facilities – New or Upgrades
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New Surface Mines or Upgrade Locations
Edwight ** 4th Quarter 2003 Peg’s Branch** 1st Quarter 2004 West Cazy (5230) 1st Quarter 2004 North Surface (2500) 1st Quarter 2004 Superior ** 1st Quarter 2004 Highland (575) 1st Quarter 2004 Nicholas (992/777’s) 1st Quarter 2004
** New Mining Operation
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New Surface Mines or Upgrade Locations
Black Castle (5230) 2nd Quarter 2004 Twilight (4100) 2nd Quarter 2004 Glory Surface ** 2nd Quarter 2004 Twilight 3rd Quarter 2004
(1800)
Republic** 3rd Quarter 2004 Edwight (575) 3rd Quarter 2004 Superior (5500) 4th Quarter 2004
** New Mining Operation
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New Surface Mines or Upgrade Locations
Bandmill (2500) 4th Quarter 2004 Edwight (HWM/575) 1st Quarter 2005 Twilight Coal Facility 1st Quarter 2005 Chess ** 2nd Quarter 2005 Twilight (3600) 2nd Quarter 2005 Homer III Loadout 2nd Quarter 2005 Black Castle (4100) 3rd Quarter 2005 Twilight Dragline 3rd Quarter 2006
** New Mining Operation
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Edwight – New Surface Mine—Q4 2003
Unique Surface Mine
High Quality Reserve Base – Approx. 70% Met Some Met Coal Is Shipped Direct from Pits High Percentage of Low Cost Dozer Production Highwall Miner Operating in Met Coal Started with Excavator, Dozers, and Cat 992G Started Annual Production at 800k TPY
Edwight- Hitachi EX 2500
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Edwight Cat D11– Q1 2004
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Peg’s Branch –Q1 2004
Small Surface Mine in Eastern Kentucky
Cat 992G Loader and Cat D11 Dozer
Additional Annual Capacity Approx. 4.0 MM BCY
Additional Annual Prod. Approx. 300,000 Tons
Peg’s Branch Cat 992G – Q1 2004
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Peg’s Branch Cat D11– Q1 2004
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West Cazy –Q1 2004
Boone County, WV ( 40 miles south of Charleston)
Equipment Upgrade
Replace CAT 992G with CAT 5230B Excavator
Additional Annual Capacity Approx. 1.8 MM BCY
Additional Annual Prod. Approx. 160,000 Tons
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West Cazy – Q1 2004
CAT 5230B Excavator
Purchase Price Used
CAT Bucket Capacity 21 Cubic Yds
992G Bucket Capacity 16 Cubic Yds
Added two (2) CAT Trucks
Truck Purchase Price used
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CAT 5230B Excavator
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West Cazy—Capacity Upgrade – Q1 2004
CAT 5230 – CAT Truck
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North Surface –Q1 2004
Replace CAT 992G with Hitachi EX 2500
Additional Annual Capacity 1.8 MM BCY
Additional Annual Prod. 160,000 Tons
Additional Manning Required 1
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North Surface –Q1 2004
Hitachi EX 2500-5 Excavator
EX 2500 Bucket Capacity 20 Cubic Yds
992G Bucket Capacity 16 Cubic Yds
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North- Hitachi EX 2500-5 – Q1 2004
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Superior Surface Mine – Q1 2004
New Surface Operation
Started Operating with Cat 992G and D-11
Moved EX 2500 shovel from South to Superior April 1st.
EX 2500 full production mid-to-late April
Down Hill Beltline—Silo
Load coal into silo June 1st
All Coal Trucked Off Road
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Superior—Hitachi EX 2500 – Q1 2005
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Highland Surface – 1st Quarter 2004
Added Komatsu D 575-3 Super Dozer Additional Annual Capacity 1.8 MM BCY Additional Annual Prod. 160,000 Tons Additional Manning Required 3 Komatsu Blade Capacity 90 Cubic Yds Largest Dozer in the world
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Komatsu D575-3
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Highland—Komatsu D575A-3 Super Dozer
World’s Largest Dozer!
Engine Model Komatsu SA12V170E Net HP @ 1800 RPM 1150 HP (858 kW) Blade Capacity 90 yd3 (69 m3) Operating Weight 336,420 lb (152,600 kg)
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Highland—Komatsu D575-3 Super Dozer
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Black Castle Capacity Upgrade – Q1 2004
Replace Hitachi EX 1800 with CAT 5230B Additional Annual Capacity 1.8 MM BCY Additional Annual Prod. 160,000 Tons Additional Manning Required 2
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Black Castle Capacity Upgrade—Q1 2004
CAT 5230B Excavator
CAT Bucket Capacity 21 Cubic Yds EX 1800 Bucket Capacity 13 Cubic Yds Add (1) CAT 785 B Truck
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Black Castle—CAT 5230 Excavator
Loading CAT 150 Ton Rock Truck
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Twilight Surface Mine –Q2 2004
Major Expansion
Additional Truck/Shovel Spread
Additional Annual Capacity 22 – 24 MM BCY
Additional Annual Prod. 1.5 MM Tons
Additional Manning Required 46
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Twilight Expansion –Q2 2004
P & H 4100 XPB Shovel
Suspended Load Rating (SLR)—120 Tons
(2) |
| Existing BE Shovels SLR — 80 Tons |
P & H Bucket Capacity ~ 72 Cubic Yards
BE Bucket Capacity ~ 53 Cubic Yards
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Additional Twilight Equipment
834 Lozer for clean-up at shovel
(2) |
| D-10 dozers – fill and bench/devel. |
(2) |
| Drills – one purchased/one transferred |
(2) |
| Coal Loaders |
(6) |
| Coal trucks – used CAT 777’s |
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Twilight—P&H 4100 XPB Shovel
Largest Shovel and Trucks Ever to Operate in WV
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Twilight—P&H 4100 XPB Shovel
4100 XPB Double Side Loading
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Twilight—P&H 4100 XPB Shovel
Largest Shovel and Trucks Ever to Operate in WV
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Komatsu 930E-3
Engine Model Komatsu SSDA16V160 Gross HP @ 1900 RPM 2700 HP
AC Drive System GDY 106 W GVW 1,106,000 lb Payload 320-330 Ton Body (SSB* SAE 2:1) 276 yd3
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Komatsu 930E-3
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Estimated Total Purchases for Twilight
New Shovel
New Rock Trucks
(2) |
| Dozers – Used |
Lozer – Used
(2) |
| New Drills |
(2) |
| Coal Loaders – Used |
(6) |
| Coal Trucks – Used |
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Glory Surface Mine –Q2 2005
New Surface Mine Start-up
Purchased New O & K RH 120 Excavator
22 cubic yard excavator
Purchased 4 New Cat 785 Rock Trucks
Purchased (2) New IR DML drills
Purchase used D-11 Dozer
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Glory Surface—O&K RH 120
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O&K RH 120 – Glory Surface
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Republic Surface Mine – Q3 2004
New Surface Mine—Start-up was September 2004 Approx. 12MM BCY Annually and ~ 750,000 tons 1—New Hitachi EX2500 Excavator 3—New Komatsu 730E Trucks 992G Loader 3-New Cat 150 Ton Trucks
2- DML Blast Hole Drills Support dozers
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Republic—Hitachi EX 2500-5
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Republic Energy Komatsu 730E
Engine Model Komatsu SSA16V159 Gross HP @ 1900 RPM 2000 HP
DC Drive System GE 788 w/ GTA-22 Alternator GVW 715,000 lb Payload 200 Ton Body (SSB* SAE 2:1) 145 yd3
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Republic Energy Komatsu 730E
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Superior Surface – Capacity Upgrade Q4 2004
Purchased New Komatsu 5500 Excavator Purchased (5) New Komatsu 830E Trucks Purchased (2) New Blast Hole Drill Purchased (2) Additional D-11 Dozers Annual Incremental Increase of 5 MM BCY Annual Tonnage Increase of 350,000 tons Transferred EX 2500 to Bandmill
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Superior Surface Mine
Komatsu PC 5500 Excavator Upgrade
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Superior—Komatsu PC5500 Backhoe
Engine model Two Komatsu SSA12V159 Gross HP @ 1800 RPM 2520 HP (1880 kW) Bucket Capacity (SAE 1:1) 36.6 yd3 (28 m3)
Operating Weight 1,102,500 lb (500 t) 50
Superior Surface Mine
Komatsu 830E Truck Upgrade
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Komatsu 830E
Engine Model Komatsu SSDA16V160 Gross HP @ 1900 RPM 2500 HP
DC Drive System GE 787 w/ GTA-26 Alternator GVW 850,000 lb Payload 240-250 Ton Body (SSB* SAE 2:1) 193 yd3
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Bandmill – Capacity Upgrade – Q4 2004
Added Hitachi EX 2500 from Superior Transferred All Support Equipment Annual Increase of 5 MM BCY Annual Production Increase of 400,000 tons
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Edwight-Capacity Upgrade – Q4 2004
Added 1st Komatsu 575-3 Super Dozer Capital Cost $ 2.2 MM
Annual Increase of 3.9 MM BCY Annual Increase of 250,000 Tons
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Edwight- Komatsu D575A-3 Super Dozer
World’s Largest Dozer!
Engine Model Komatsu SA12V170E Net HP @ 1800 RPM 1150 HP (858 kW) Blade Capacity 90 yd3 (69 m3) Operating Weight 336,420 lb (152,600 kg)
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Edwight Capacity Upgrade – Q1 2005
Added 2nd Komatsu 575-3 Super Dozer Capital Cost $ 2.2 MM
Annual Increase of 3.9 MM BCY Annual Increase of 250,000 Tons Purchased New EX 2500 Excavator
Transferred EX 2500 Shovel to Chess Surface Added 2nd Highwall Miner from Twilight
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Edwight – Q1 2005
2nd Super Dozer at Edwight
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Twilight Coal Handling Upgrade – Q1 2005
Twilight Surface Mine
Installed 2nd Truck Dump Facility Completed mid-January Rated at 1500 TPH
Ability to haul wash and direct simultaneously
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Twilight Coal Handling Upgrade – Q1 2005
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Twilight Capacity Upgrade – Q2 2005
Another Twilight Surface Mine Expansion Completed April 4th – 31,000 BCY/Day Added New Hitachi 3600 April 4th Added (4) Komatsu 730E Trucks – 200T Added (1) New IR DML Drill Added (1) Cat 785 Rock Truck Added (1) 992 Coal Loader
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Twilight Equipment Upgrades – Q2 2005
Purchased (2) New 730E Komatsu Trucks
Replace Older Trucks in Fleet
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Twilight 730E – 200 ton Truck
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Twilight Equipment Upgrades – Q2 2005
Rebuild (Glider Kits) 630E’s 170Ton Trucks
Will eliminate (3) high hour Cat 777’s
1st Truck Completed April 9th
2nd Truck Complete by May 1st
Plan is one September, October, and November
First two in Coal – next three in Rock
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Twilight Equipment Upgrades – Q2 2005
Rebuilt Komatsu 630E 170 Ton Truck
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Chess Surface – Q2 2005
New Surface Mine at the Elk Run Impoundment Hitachi EX 2500 Shovel from Edwight Purchased New EX 2500 and Placed at Edwight Purchased (3) Komatsu 150 Ton Trucks 1.9 MM BCY at approximately 25:1 Project Increases Elk Run Impoundment Life Completed by End of 2005 Equipment Transfers to Black Castle in late 2005
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Black Castle Coal Handling Facility
Upgrade – Q2 2005
Required for 4100 Shovel Expansion Coal Coal Handling and Train Loading Facility Start-up April 2005 New Idlers, Rollers, Belting, and Sampler
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Black Castle Expansion – Q3 2005
Black Castle Expansion
Relocate P&H 4100 from Big Elk (Starfire) Shovel relocation and repairs Power system Six new Komatsu 930 E’s
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Big Elk (Starfire) P&H 4100 Shovel
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Rebuilt P&H 4100 Shovel at Black Castle Q3 – 2005
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Rebuilt P&H 4100 Shovel at Black Castle Q3 – 2005
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Rebuilt P&H 4100 Shovel at Black Castle Q3 – 2005
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Twilight Dragline Project – Q3 2006
Completed evaluation relocating Marion 8050 dragline from Big Elk surface mine.
Annual BCY estimated at 16.0 MM Annual tonnage produced = 1.25 MM
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Twilight Dragline Project – Q3 2006
Dragline Advantages
No trucks required (savings of $ 18 MM) Less manpower – 12 equivalent/spread Minimal diesel fuel consumption Minimal tire requirement Minimizes haul distances on lower seams
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Twilight Dragline Project – Q3 2006
Approximately five months to relocate dragline
Approximately eight month re-erect and repair
Contract signed with Bucyrus Erie on June ‘05
Bucyrus Erie required to have dragline operating Q3 2006
Massey Project Manager on-site daily
Project is on Schedule
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Twilight Dragline Project – Q3 2006
Original Relocation Concerns
Adequate work area available by Q3 2006
Adequate pre-strip capacity in out years
Contemporaneous Reclamation Issues
Power requirements from AEP
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Marion 8050 Dragline – Typical Photo
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Dragline Acquisition—Actual Photo
Marion 8050 Dragline
Note School Bus in Foreground 77
Dragline Acquisition – Actual Photo
Marion 8050 Dragline
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Marion 8050 Dragline Bucket
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Surface Operations – Summary
Largest Surface Mining Company in CAPP
Massey Operates 16 Surface Mines
Seven Highwall Miners
Over 150 MM Tons Surface Reserves Permitted
Over 250 MM Additional Tons In Process
Unprecedented Surface Mine Growth in CAPP
Sound Operational Performance
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Doing the Right Thing. with Energy
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