Massey Energy plans to raise $850 million

Massey Energy plans to raise $850 million

CHARLESTON (AP) -- Coal mine operator Massey Energy is planning to raise at least $850 million in fresh capital.

Richmond, Va.-based Massey says the bulk of the money would come from the sale of $600 million in convertible notes. Massey's also planning to sell $250 million worth of common stock.

Separately, Massey says it's also offering to buy back $335 million worth of notes.

Tuesday's twin announcements come as Massey tries to increase annual production by 25 percent to 50 million tons. Massey wants to take advantage of soaring international coal demand and prices, which have more than doubled since 2007.

Shares of Massey fell 1 cent to $65.90 Tuesday.