International Coal Group

International Coal Group, Inc.

File:International Coal Group logo.png
Company type	Public
Traded as	Template:NYSE was
Industry	Coal mining
Founded	Acquisition of Horizon Natural Resources assets through bankruptcy auction (May 2004)
Headquarters	Teays Valley, West Virginia, United States
Key people	Wilbur L. Ross, Jr., Chairman Bennett K. Hatfield, President/CEO
Products	Coal
Revenue	$647.7 million (2005)
Number of employees	1,425 (2004)
Website	www.intlcoal.com (Currently redirects to Arch Coal's website)

International Coal Group, Inc. (ICG), based in Teays Valley, West Virginia, was established in May 2004 by WL Ross & Co to acquire distressed coal properties previously owned by Horizon Natural Resources. The company managed twelve mining operations located throughout Northern and Central Appalachia (Kentucky, Maryland, West Virginia) as well as one site in the Illinois Basin. ICG launched its initial public offering on the New York Stock Exchange in November 2005. In 2011, it was integrated into Arch Coal, Inc as a subsidiary.

History

Investor and business executive Wilbur Ross founded ICG via WL Ross & Co in May 2004 with a focus on purchasing and restructuring bankrupt coal enterprises to improve their market position.

In August of that year, Ross's entities Newcoal LLC and Oldcoal LLC collaborated with A.T. Massey Coal Company to acquire Horizon Natural Resources’ assets for $786 million, encompassing the holdings of what was then the fourth-largest coal producer in the U.S. A bankruptcy court decision permitted ICG to reject union agreements covering active miners and retirees, concentrating instead on nonunion operations—a controversial strategy that elicited protests from labor unions.

Following this transaction, the company adopted the name ICG, Inc. in September 2004. Shortly thereafter, a corporate reorganization was announced whereby ICG would acquire Anker Coal Group, Inc. and CoalQuest Development LLC, consolidating these entities under a newly formed International Coal Group, Inc., with shareholders exchanging their prior shares for new ones in a tax-deferred transaction.

In June 2011, Arch Coal completed a $3.4 billion acquisition of ICG, positioning itself as the second-largest producer of coking coal in the United States during a period of increasing demand from markets such as China and India—thereby enhancing Arch Coal’s market footprint and international reach.

By the year 2006, WL Ross & Co maintained a 13.7% ownership interest in ICG valued at roughly $200 million, underscoring substantial investment returns within the coal industry sector.

Sago Mine disaster

ICG operated the Sago Mine located in West Virginia, where an explosion on January 2, 2006 trapped thirteen miners underground. Twelve lost their lives while one individual, Randal McCloy Jr., survived and was hospitalized. The company initially reported that all miners were alive, which later proved inaccurate and sparked public criticism. ICG contributed $2 million toward assistance for the families affected by the tragedy. Legal claims alleging negligence and unsafe working conditions were resolved through settlements with McCloy Jr. and one victim’s family in 2008.

During 2005, the mine was cited for 208 violations by the federal Mine Safety and Health Administration (MSHA), including 96 classified as significant or serious—an increase from 68 citations issued in 2004. Penalties totaled over $24,000 for approximately 202 infractions that year. Analyst Anindya Mohinta of J.P. Morgan raised concerns regarding Wilbur Ross’s substantial coal investments given regulatory hurdles and the considerable capital needed to implement safety enhancements.

ICG acquired Anker West Virginia Mining Company Inc., which previously operated Sago Mine, toward the end of 2005. Official operator status transferred to Wolf Run Mining Company—a subsidiary of Hunter Ridge Mining Company—which itself is under ICG’s ownership. Vice President Sam Kitts testified that the explosion was probably caused by a lightning strike igniting methane gas. Key personnel during this period included Chuck Dunbar as general manager along with safety managers Johnny Stemple and Ty Coleman representing ICG throughout the operational transition.

Clean Water Act

In 2012, a coalition of four organizations—the Waterkeeper Alliance, Kentuckians for the Commonwealth, Appalachian Voices, and Kentucky Riverkeeper—secured a legal agreement in Franklin Circuit Court with the Energy and Environment Cabinet and International Coal Group (ICG). This settlement addressed issues related to water contamination and inaccurate reporting by ICG. The lawsuit highlighted deficiencies in state regulatory oversight, flawed water quality monitoring, and violations of the Clean Water Act within Kentucky's coal sector. As a result, Kentucky implemented more rigorous reporting requirements, uncovering numerous infractions committed by ICG. The agreement compelled ICG to pay a total of $575,000, which included a $225,000 penalty, and mandated independent audits of its water monitoring procedures. Additionally, allocated funds are designated for remediation efforts in polluted waterways across eastern Kentucky, with $335,000 directed to Kentucky PRIDE to eliminate residential sewage discharges into local streams.

Bennett K. Hatfield

Bennett K. Hatfield held the position of President and CEO at ICG in 2006. Prior to this role, he occupied senior executive positions at Arch Coal and Massey Energy. He subsequently led Patriot Coal until his departure in 2015; shortly thereafter, Patriot Coal filed for Chapter 11 bankruptcy protection. Hatfield also served on the board of the West Virginia Coal Association. In May 2016, he was tragically killed during an attempted robbery.

See also

• Arch Coal

External links

• Official International Coal Group website