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Natural Resource Partners L.P. Acquires Another Coal Preparation and Handling Facility


HOUSTON, Sept 05, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Natural Resource Partners L.P. (NYSE: NRP, NSP) today announced that it has acquired another coal preparation plant and coal handling facility under its memorandum of understanding with Sedgman USA, LLC for approximately $7.7 million, of which $3.0 million was paid at closing.

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As with the first facility announced in August, Sedgman will operate the facilities under contract with the mining company, and NRP will receive a throughput fee for each ton of coal handled by the facilities based upon a percentage of the gross selling price with a designated minimum per ton. In addition to the minimum per ton, NRP will receive monthly recoupable minimums on the plants. The coal being processed through this facility will be mined by Justice Energy, Inc., a subsidiary of James C. Justice Companies, Inc.

The Red Fox preparation plant and coal handling facility is located near Bishop, West Virginia. NRP anticipates that the plant, scheduled to be completed by mid-October, will handle an estimated 20 million tons of coal reserves during its life. While the coal preparation plant is still under construction, coal is currently being handled through the coal handling and rail load-out facility, making the transaction immediately accretive. NRP anticipates annual revenues of approximately $1.5 million from the facility.

The initial $3.0 million payment paid at closing was funded through the partnership's credit facility. The remaining payments on the facility are scheduled to be paid between now and the completion of construction.

Justice has also informed NRP that Dynamic Energy, Inc., a Justice- affiliated company, will mine the coal reserves processed by the Coal Mountain plant acquired last week by NRP, not Bluestone Coal, as was previously announced.

Natural Resource Partners L.P. is headquartered in Houston, TX, with its operations headquarters in Huntington, WV. NRP is a master limited partnership that is principally engaged in the business of owning and managing coal properties in the three major coal producing regions of the United States: Appalachia, the Illinois Basin and the Powder River Basin. The common units are traded on the New York Stock Exchange (NYSE) under the symbol NRP and the subordinated units are traded on the NYSE under the symbol NSP.

For additional information, please contact Kathy Hager at 713-751-7555 or Further information about NRP is available on the partnership's website at

This press release may include "forward-looking statements" as defined by the Securities and Exchange Commission. Such statements include the estimated revenues, the completion date of the coal handling facilities, the coal reserves associated with the facilities, as well as the accretive nature of the transaction. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the partnership. These risks include, but are not limited to, decreases in demand for coal; changes in operating conditions and costs; production cuts by our lessees; commodity prices; unanticipated geologic problems; changes in the legislative or regulatory environment and other factors detailed in Natural Resource Partners' Securities and Exchange Commission filings. Natural Resource Partners L.P. has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

SOURCE Natural Resource Partners L.P.

Kathy Hager of Natural Resource Partners L.P.

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