International Coal Group

International Coal Group, Inc. (ICG), is a company headquartered in Teays Valley, West Virginia that was incorporated in May 2004 by WL Ross & Co for the sole purpose of acquiring certain assets of Horizon. ICG eventually operated 12 mining complexes in Northern and Central Appalachia (Kentucky, Maryland, and West Virginia) and one complex in the Illinois Basin. In November 2005, ICG had a stock offering on the New York Stock Exchange. In 2011 ICG became a subsidiary of Arch Coal, Inc in 2011.

History

Wilbur Ross's WL Ross & Co and other investors established the International Coal Group, Inc. (ICG) in May 2004 with the intention of purchasing distressed coal companies, then restructuring them to operate more competitively.[1]

In August 2004 Wilbur Ross's Newcoal LLC and Oldcoal LLC, in partnership with A.T. Massey Coal Company[2] acquired the assets of the bankrupt Horizon Natural Resources, the fourth largest coal company in the United States.[3]

Sago Mine disaster

ICG operates the mine in Sago, West Virginia where at approximately 6:30 a.m. on January 2, 2006, 13 coal miners were trapped after an explosion in the Sago Mine disaster. Twelve miners were later found to have died, while one survivor, Randal McCloy Jr., was taken to a hospital in critical condition. ICG faced controversy after an initial report claimed 12 of the trapped miners had been found alive. According to an article in the Wall Street Journal ICG gave an initial donation of $2 million to support the families of the victims.[6] According to a January 27, 2008 article in the Pittsburgh Post, McCloy Jr. and the family of one of the victims settled lawsuits against ICG. The lawsuits "alleged negligence by ICG and the other companies, including alleged failure to maintain a safe working environment."[7]

In 2005, the mine was cited by the federal Mine Safety and Health Administration (MSHA) 208 times for violating regulations, up from 68 in 2004. Of those, 96 were considered significant/serious and substantial (S&S).[8] According to a January 4, 2006 article in the New York Times, federal records showed that their inspectors had fined the Sago mine "more than $24,000 for roughly 202 violations in 2005".[9] Anindya Mohinta, a London-based mining analyst with J.P. Morgan, questioned Ross for investing so heavily in the coal industry "because of myriad government safety and environmental regulations" the coal industry "requires so much capital investment to improve bankrupt assets." Mohinta said that the "human risks of investing in businesses like coal mines have an "act of God" component and it is risky for new companies in the sector to know where and when to spend money for maintenance and prevention."[6]

In late November of early December 2005, ICG acquired Anker West Virginia Mining Company Inc who had been the official mine operator of Sago Mine. The official Sago Mine operator became Wolf Run Mining Company in late 2005. Wolf Run Mining Company was a subsidiary of Hunter Ridge Mining Company, which in turn was a subsidiary of the parent company ICG according to Vice President Sam Kitts in his testimony before the Mine Safety and Health Administration (MSHA) hearing on March 23, 2006.[10] Kitts identified Ben Hatfield as his supervisor during the period of transition from Anker to ICG.[10] ICG was in the process of acquiring Anker in November 2005.[4]

type	Public
foundation	Acquisition of many assets of Horizon Natural Resources at bankruptcy auction (May 2004)
location	Teays Valley, West Virginia, United States
key people	Wilbur L. Ross, Jr., Chairman Bennett K. Hatfield, President/CEO
num employees	1,425 (2004)
industry	Coal mining
products	Coal
revenue	$647.7 million U.S dollars (2005)
homepage	www.intlcoal.com (Now redirects to Arch Coal's website)

International Coal Group

History

Sago Mine disaster

Clean Water Act

Bennett K. Hatfield

See also

External links

References