Patriot Coal Corp

(NYSE: PCX)

Industry: Coal
On the web: http://www.patriotcoal.com
Employees: 4,300

Patriot Coal Corporation is a Delaware Corporation. Effective October 31, 2007, Patriot Coal Corporation 'Patriot' was spun-off from Peabody Energy Corporation 'Peabody' and became a separate, public company. The spin-off from Peabody, including coal assets and operations in Appalachia and the Illinois Basin, was accomplished through a dividend of all outstanding shares of Patriot. Patriot is engaged in the mining of thermal coal, also known as steam coal, for sale mainly to electric utilities and metallurgical coal, for sale to steel mills and independent coke producers. Patriot's mining operations and coal reserves are located in the eastern and midwestern United States, mainly in West Virginia and Kentucky. It ships coal to electric utilities, industrial users and metallurgical coal customers via various company-owned and third-party loading facilities and multiple rail and river transportation routes. The Company controls approximately 1.8 billion tons of proven and probable coal reserves. The Company's proven and probable coal reserves include metallurgical coal and medium and high-Btu thermal coal, with low, medium and high sulfur content. On April 2, 2008, Patriot entered into an agreement to acquire Magnum Coal Company 'Magnum'. Magnum was one of the largest coal producers in Appalachia, operating 11 mines and 7 preparation plants with production from surface and underground mines and controlling more than 600 million tons of proven and probable coal reserves. On July 23, 2008, Patriot consummated the acquisition of Magnum. Patriot reports its operations through two reportable operating segments, Illinois Basin and Appalachia. In southern West Virginia, it has twelve active mining complexes located in Boone, Clay, Lincoln, Logan and Kanawha counties. In northern West Virginia, it has one complex located in Monongalia County; and Illinois Basin, in the Illinois Basin, it has three complexes located in Union and Henderson counties in western Kentucky. It sells coal produced by its operations and third-party producers. The Company's sales and marketing group includes personnel dedicated to performing sales functions, market research, contract administration, credit/risk management activities and transportation and distribution functions. The United States coal industry is highly competitive, both within each region and on a national basis. Federal and state authorities regulate the Company with respect to matters such as employee health and safety, permitting and licensing requirements, the protection of the environment, plants and wildlife, the reclamation and restoration of mining properties after mining has been completed, surface subsidence from underground mining and the effects of mining on groundwater quality and availability.