Shares of U.S. coal mining companies rose on Monday on speculation of a wave of consolidation in the industry after Alpha Natural Resources (NYSE: ANR) agreed to buy Massey Energy (NYSE: MEE) in a $7 billion deal.
Meanwhile, Alpha's chief executive Kevin Crutchfield said the acquisition of Massey, which will create the world's third largest producer of steel-making metallurgical coal, is expected to boost earnings by 2012.
He said that in a couple of years the combined company could be producing 28 million to 30 million tons of metallurgical coal, which is in high demand, especially from China and other emerging economies.
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