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July 29, 2010 5:18 AM

Massey Wants to Mine at Deadly Blast Site

By
CBSNews

 

(AP)  Massey Energy plans to resume extracting coal by constructing a new entrance to its Upper Big Branch mine within months, despite continuing investigations of the explosion that killed 29 men there in April, the company's chief executive said Wednesday.

Massey also wants government permission to restart two sections in the far southern reaches of the Raleigh County mine, CEO Don Blankenship said during a conference call with analysts. That area was untouched by the blast and Blankenship estimated it could produce 600,000 tons annually.

"We have the permits from an environmental viewpoint that are necessary to do that and we are going to activate that effort," Blankenship said. "Absent the government stopping us for some unknown reason, which I don't know what that would be, then I suspect that we will be able to access the reserve with that facility in the next five to six months."

The federal Mine Safety and Health Administration took control of the mine April 5 and won't allow production in active areas until it cancels that order, spokeswoman Amy Louviere said. "We would probably allow new entries to be driven provided they were not connected into UBB."

Massey has struggled to replace the high-priced metallurgical coal produced at Upper Big Branch. So-called coking coal is a key ingredient in steel. Shipments fell 1 million tons short of expectations in the second quarter, despite adding shifts and opening new sections in existing metallurgical mines.

Massey lost $88.7 million, or 88 cents per share, in the quarter. The results include $128.9 million in pretax charges tied to the explosion.

Massey estimates legal fees for the blast will total up to $8 million per quarter. The company also expects higher capital expenditures to replace equipment and to open new mines.

More on Deadly Mine Blast

Massey: Methane Levels Spiked before W.Va. Blast
Massey Miners Fudged Inspections, Feds Told
Miners: W.Va. Blast Site Was Ticking Time Bomb

Investigators suspect a combination of methane and coal dust caused the explosion, though they only began searching for clues underground in June.

Massey believes that search is nearly done.

"I think we're drawing closer to having a conclusion and probably will within a couple months," Blankenship said.

Massey has been floating a theory that a crack in the mine floor opened unexpectedly and flooded the mine with such a vast quantity of methane that it overwhelmed ventilation equipment and sensors designed to shut off mining equipment before gas hits explosive levels.

MSHA and other regulators have discounted Massey's theory.

Richmond, Va.-based Massey operates mines in West Virginia, Kentucky and Virginia.

AP
Add a Comment
by gar51 July 29, 2010 1:01 PM EDT
until the issues are resolved I don't think Massey or any of it's subsidiarys should be allowed to resume opperations at this or any other mine where saftey violations have been filed. Massey or any other of these large corperations who put profits ahead of the human costs should be called to task for their lack of conceince when it comes to those who are providing them their livleyhood at costs they can't imagine.The challeng here is to get these men to step away from this idea of intitlement and for them to realize this attitude breeds arrogance and intolerance which in the end Kills People. A man's actions prove what he is.When I look at these men I can't help wonder how they got so far and why they are still there.Twenty nine lives I wonder how they would feel if it were their families.Twenty nine lives, Twenty nine lives, TWENTY NINE LIVES! Twenty nine families how many children now without a father what is the real cost?
This system needs to be overhauled and rules inforced, identifing individuals responsable for violations and prosicuting according to law.If we let it happen we will go back to the turn of the 20th century when men like Carnegy openly built their empires on the bones of those they employed.Never be afraid to lose your job because of saftey issues there are more important things you could lose.For those of us who go under ground,climb steel,go down in coffer dams or any other job that involves hazard we are worth more than what we are paid.Never forget without us these empires,countries and nations could never built.
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by montn July 29, 2010 11:02 AM EDT
Why is this murderer not serving time for the 29 deaths on his watch?
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by rightbehind July 29, 2010 9:59 AM EDT
They take about 1 weeks salary and spend it on ventilation for the mines from the flag wearing, tea partying, 16 thousand dollar an hour ceo clown those mines will probably be a lot safer. Look at the picture closely of him. What could this guy possibly know that would make him worth that kind of money?
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