Exhibit 99.7
Metallurgical Sales
Mike Allen
President, Massey Metallurgical Sales September 27, 2005
Massey Metallurgical Mines
Domestic Met Accounts
Massey Coal Export Accounts
New Markets for Massey
Coke Oven Battery – Al Nasr
Posco-Korea
Pohang Steelworks
Gwangyang Steelworks
China Steel
Steel Authority of India
9
Issues Driving Changes
Strong Worldwide Steel Production Rapid Chinese & Indian Growth Weak U.S. Dollar
10
Strong Worldwide Steel Production
World approaching 1 billion tonnes of production
December 2004 up 23% year over prior year China is primary source of growth
Others also serving Chinese market
Capacity utilization will rise in Japan, U.S., other traditional producers
Production is straining raw material inputs
Source:
11
Growth Rate in India & China
Economy running at a robust GDP rate >9% in China and >13% in India created vacuum-like demand for raw materials.
Crude steel production in 2004 topped 273 MMt in China and 32 MMt in India.
Source:
HILL & ASSOCIATES, INC.
12
Future Growth led by BRICS
The world is likely to see increased demand for BF-based ironmaking and hence coke in the short to medium term. China is a major factor in the strong demand growth for coke and hard coking coal.
Vast iron ore reserves Extensive met coal Scrap/some DRI
Low grade iron ore reserves Vast(?) met coal No Scrap
Limited iron ore reserves Some met coal No scrap/minor DRI
Vast high grade iron ore reserves Very limited met coal No scrap/some sponge iron
Vast low cost high grade iron ore reserves no met coal No Scrap/limited merchant pig iron
Brazil Russia India China SE Asia
13
KEY MASSEY MET COAL
OPERATIONS
MARFORK COAL
15
Marfork Coal Company
Located in Raleigh County, West Virginia. Massey greenfield project began in 1994 on former Bethlehem properties.
At 7 million annual tons, largest shipper of metallurgical coal in U. S.
Recently expanded with acquisition of adjacent Rowland reserves.
Eagle, Powellton and Cedar Grove Seams
16
Marfork Coal Company
Rail service:
CSX Kanawha District
150-car, 4-hour batch weigh loadout Access to Pier IX and DTA Terminal
17
PERFORMANCE COAL
18
GOALS PLANT
19
Performance Coal & Goals Plant
Rail service at Goals plant:
CSX Kanawha District 90-car, 24-hour loadout
Access to Pier IX and DTA Terminal
Rail service at Surveyor Loadout:
NS Virginian District 80-car, 4 hour loadout
Access to Lamberts Point Terminal
20
Performance Coal & Goals Plant
Located in Raleigh County, West Virginia. Formerly Peabody’s Montcoal and Sundial operations.
Primary production is UBB Eagle longwall-Most goes to Marfork.
Annual production of 5.5 million tons. Shumate Powellton and Hazy Ridge Hernshaw Met coals also.
21
ELK RUN COAL
22
Elk Run Coal Company
Located in Boone County, West Virginia. Began operations as a Massey greenfield development in 1981.
White Knight Powellton Mine and Cedar Grove Mine are key met coal producers. Massey’s largest shipping point at +9 million annual tons — steam and met coals.
23
24
Elk Run Coal Company
Rail service:
CSX Kanawha District
150-car, 4-hour batch weigh loadout Access to Pier IX and DTA Terminal
25
INDEPENDENCE COAL
26
Independence Coal Company
Based in Boone County, West Virginia. Formerly Westmoreland’s Ferrell operation; acquired by Massey in 1992. Primary met production is Powellton seam from Justice Mine longwall.
Annual production exceeds 5 million tons.
27
Independence Coal Company
Rail service:
CSX Kanawha District 150-car, 4-hour loadout
Access to Pier IX and DTA Terminal
28
KNOX CREEK
Knox Creek Coal Corporation
Knox Creek includes the Tiller No. 1 underground room and pillar mine and a preparation plant.
Production from the mine is belted directly to the preparation plant.
The plant has a feed capacity of 650 tons per hour.
The preparation plant serves customers on the Norfolk Southern rail system with unit trains of up to 100 railcars.
30
BANDMILL PREPARATION PLANT
31
Bandmill Preparation Plant
Located at Lyburn, West Virginia. Shipping Point - Hutchinson, WV.
5 | | million tons per year production capacity. Rail Service at Bandmill |
CSX #82733 - Kanawha District
150-car, 4-1/2 hour batch weigh, 3700 tons per hour Raw Coal Storage - 200,000 tons - Silos + ground Clean Coal Storage - 100,000 tons - Silos + ground
32
Logan County Development
Logan Complex includes Aracoma Mine and Bandmill Preparation plant - both near Logan, WV.
Aracoma reserves leased in 1987. Adjacent Bandmill plant acquired from Pittston in 1998.
Aracoma Alma Mine – 3 Million tons per year production – 1 Longwall and 2 Miner Sections.
Aracoma reserves of 30.5 million recoverable tons.
33
GREEN VALLEY
34
Green Valley Coal Company
Located in Nicholas County, WV.
Former Lady H operation was acquired by Massey in 1996.
Serves both premium industrial and metallurgical customers All production is Sewell seam. Annual shipments of 0.6 million tons.
35
Green Valley Coal Company
Rail service:
CSX NF&G District 75-car, 24-hour loadout
Access to Pier IX and DTA Terminal
36
NICHOLAS ENERGY
37
NICHOLAS ENERGY COMPANY
Located in Nicholas County, West Virginia Purchased from Bethlehem’s HPM subsidiary in 1997 NS shipping point post Conrail split
38
NICHOLAS ENERGY COMPANY
ANNUAL PRODUCTION - 3.7 million tpy
2.5 million tons compliance
1.0 million tons <1% sulfur
39
NICHOLAS ENERGY COMPANY
Rail Service:
Norfolk Southern Kenova Freight District
140 car, 4-hour batch weigh loadout
40
Rawl Sales & Processing
38
Rawl Sales & Processing Co.
Operations located in Mingo County, West Virginia and Pike County, Kentucky Developed as Massey greenfield project in 1977.
New rail coal receiving system allows sourcing of production from plus 100 mile radius. Annual production of 3-4 million tons.
42
Rawl Sales & Processing Co.
Rail service:
NS Thacker District
150-car, 4-hour batch weigh loadout Access to Lamberts Point Terminal
43
Doing the Right Thing. with Energy
