Walter Minerals, with annual production of nearly 1.5 million tons, produces coal for the Alabama steam and industrial coal markets.

Walter Minerals operates through two primary businesses: Taft Coal Sales & Associates ("Taft"), a central Alabama surface coal producer with steam, industrial and metallurgical coal reserves, and Tuscaloosa Resources, Inc. (TRI) which has historically produced approximately 800,000 tons of high BTU, primarily low sulfur coal per year for the industrial and electric utility markets.

Taft was acquired in September 2008 and operates a surface steam and industrial coal mine with annual production of approximately 0.6 million tons and has reserves of approximately 4.3 million tons. Taft also has approximately 0.5 million tons of metallurgical coal. Taft is based in Jasper, Ala.

Tuscaloosa Resources, Inc. (TRI) is located in Brookwood, Ala., near Walter Minerals' barge load-out facility and Jim Walter Resources' existing operations. Tuscaloosa Resources was acquired in August 2007. TRI controls approximately 8.0 million tons of coal reserves.