Washington (Platts)--5May2009

US coal company share prices rose sharply Monday on a report from Goldman
Sachs that raised the industry's overall rating from "neutral" to "attractive"
while warning that the price of coal itself was likely to remain weak both in
the US and internationally well into 2010.

The report leaned heavily on the bank's revised outlook for Chinese
economic growth, which Goldman expects to grow at a faster pace in 2009 and
2010 than previously thought. The increased economic activity is expected to
increase steel production, which goes hand-in-hand with metallurgical coal
consumption.

"We see upside risk to not only China steel demand but also China steel
production as a result of greater economic and industrial growth," analyst
Brian Singer wrote. "We believe this could lead to tighter metallurgical coal
supply-demand in 2010 which boosts confidence in metallurgical coal pricing."

Goldman cited strength from a Chinese stimulus package to increase its
estimates of gross domestic product growth from 6% to 8.3% in 2009 and 9% to
10.9% in 2010.

Investors pounced on the good news in the report, Massey Energy and
Patriot Coal both recorded 20%-plus gains while other major coal equities
jumped 10% or more.

The Dow Jones US Coal index closed at a six-month high, up $24.33 at
$216.95, its highest closing price since November 4, 2008 when it settled at
$239.96.