Phoenix Coal secures permits for KO mine



    - RECEIVED ALL 11 OUTSTANDING PERMITS -

    LOUISVILLE, KY, May 26 /CNW/ - Phoenix Coal Inc. (TSX: PHC) ("Phoenix" or
"the Company"), a leading producer and consolidator of thermal coal reserves
in the Illinois Basin, announced today the Company has received a permit
granted by the United States Army Corps of Engineers ("COE") under Section 404
of the Clean Water Act ("404 Permit") for its KO Mine. The issuance of the 404
Permit authorizes Phoenix to commence mine development and coal production on
the KO property, effective immediately.
    Prior to the 404 Permit, the Company received the other required permits
for the KO Mine: the Kentucky Department of Natural Resources state mining
permit ("KDNR Permit") and the permit required under Section 401 of the Clean
Water Act ("401 Permit").
    "Receiving the final KO permit is an important milestone for our
Company." said David Wiley, President and CEO of Phoenix Coal Inc. "We have
now received all of the necessary permits we need to execute our 2009
production and sales plan. The KO mine is expected to contribute over 400,000
saleable tons this year and is expected to reach full production levels by
late June."
    Due to the issuances of the delayed permits, the Company will be lifting
its force majeure declaration following the ramp-up of production at the KO
Mine. Phoenix expects to notify its customers of the end of the force majeure
period and ramp up schedule immediately.

    About Phoenix Coal Inc.

    Phoenix Coal Inc. is an integrated mining company producing high sulphur,
low chlorine, bituminous coal from the Illinois Basin. To address the
increasing demand for energy in the Eastern United States as well as in the
export market, Phoenix Coal is pursuing production growth through the focused
acquisition, consolidation, and extraction of coal assets. Phoenix Coal
currently operates surface coal mines in Muhlenberg County, Kentucky and a
barge loading facility on the Green River. Development plans for additional
surface operations, as well as an underground mine, are underway. The
Company's executive offices are located in Louisville, KY and its operational
headquarters are stationed in Madisonville, KY. For additional information,
visit www.phxcoal.com.

    FORWARD-LOOKING STATEMENTS

    Certain information set forth in this press release contains
"forward-looking statements", and "forward-looking information" under
applicable securities laws. Except for statements of historical fact, certain
information contained herein constitutes forward-looking statements which
include management's assessment of Phoenix's future plans and operations and
are based on Phoenix's current internal expectations, estimates, projections,
assumptions and beliefs, which may prove to be incorrect. Some of the
forward-looking statements may be identified by words such as "expects"
"anticipates", "believes", "projects", "plans", and similar expressions. These
statements are not guarantees of future performance and undue reliance should
not be placed on them. Such forward-looking statements necessarily involve
known and unknown risks and uncertainties, which may cause Phoenix's actual
performance and financial results in future periods to differ materially from
any projections of future performance or results expressed or implied by such
forward-looking statements. These risks and uncertainties include, but are not
limited to: liabilities inherent in coal mine development and production;
geological, mining and processing technical problems; Phoenix's inability to
obtain required mine licenses, mine permits and regulatory approvals required
in connection with mining and coal processing operations; dependence on third
party coal transportation systems; competition for, among other things,
capital, acquisitions of reserves, undeveloped lands and skilled personnel;
incorrect assessments of the value of acquisitions; changes in commodity
prices and exchange rates; changes in the regulations in respect to the use of
coal; the effects of competition and pricing pressures in the coal market; the
oversupply of, or lack of demand for, coal; currency and interest rate
fluctuations; various events which could disrupt operations and/or the
transportation of coal products, including labor stoppages and severe weather
conditions; the demand for and availability of rail, port and other
transportation services; and management's ability to anticipate and manage the
foregoing factors and risks. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Phoenix
undertakes no obligation to update forward-looking statements if circumstances
or management's estimates or opinions should change except as required by
applicable securities laws. The reader is cautioned not to place undue
reliance on forward-looking statements.

    
    The TSX has neither approved nor disapproved of the contents of this
    press release.
    





For further information:

For further information: Joanna Longo, The Equicom Group, Investor
Relations, (416) 815-0700 ext. 233, jlongo@equicomgroup.com

Organization Profile

Elgin Mining Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890