Interesting excerpt from Massey Energy's July 28 press release regarding its Q2-2009 operating results...
JMHO: Lots of dollars still up for grabs. The final 5 months of the year will tell the tale.
Safety
Massey is on track for another record year in terms of safety. Through the first six months of 2009, Massey reported a non-fatal days lost (NFDL) incident rate of 1.72. The Company's previous best rate for a full year was 1.93, achieved in 2008. By comparison, the bituminous coal industry average NFDL rate was 2.95 in 2008.
The coal mining industry is continually confronted with new and changing regulation by state and federal agencies. The implementation of initiatives required by the MINER Act of 2007 has been a major focus over the past two years. Massey is currently making the investments to comply with requirements for reinforced seals, underground shelters and miner communication and tracking devices. Capital spending on these initiatives totaled more than $8 million in the first half of the year and is expected to be more than $30 million for the full year. Massey is concerned that some regulatory requirements are ineffective and may divert capital from more effective programs or initiatives. Massey remains committed to working with regulators to identify and develop the most effective safety programs possible.
Massey has long been an innovator in mining safety initiatives. Consistent with this history, Massey has recently developed a comprehensive Hazard Elimination Program which will be implemented in conjunction with Federal and State mine safety agencies. This program is intended to reinforce Massey's members' ability to recognize and remedy potential violations of state and federal mining laws, educate members on recent changes to those laws, and enhance compliance throughout its operations. The new program will be implemented August 1, 2009 as a continuation of Massey's long-standing commitment to the health and safety of its members.
"We are very excited about this new safety program," said Chris Adkins, Massey's Senior Vice President and Chief Operating Officer. "We are confident that it will be very effective and enable us to take our safety performance to a new level."
Source: http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/07-28-2009/0005067684&EDATE=
