News Release

Contact: Tim McNeilly, (202) 690-0498
Trudy Moore, (717) 237-2266

USDA APPROVES LOAN TO SAVE PENNSYLVANIA COAL MINING JOBS

$9 Million Rural Development Loan Expected to Save Jobs for 230 Coal Miners

     WASHINGTON, September 27, 2001--USDA Rural Development officials today announced the approval of a $9 million business loan for the Lehigh Coal and Navigation Company located in Pottsville, Pennsylvania. The Rural Development loan will provide funds needed to re-open portions of the mine, and allow the return of 230 employees who have been laid off since January, 2001.

     "Today's announcement will allow many rural Pennsylvania mine workers to return to work," said Michael E. Neruda, Acting Deputy Under Secretary for USDA Rural Development. "Creating and saving jobs in rural America is an essential element of our mission, and an important factor in adding strength to our rural economy."

     The $9 million Direct Business and Industrial Loan will be provided through USDA Rural Development's Rural Business-Cooperative Service, providing working capital and refinancing for an existing loan with Congress Financial.

     Lehigh Coal and Navigation Company is engaged in the mining, processing, and sale of anthracite coal. Operations are located in northeast Pennsylvania (Schuylkill and Carbon Counties) where raw coal is extracted by open pit mining methods. Shipments are made by rail and truck to customers located within the United States and by ship or barge to foreign customers.

     USDA Rural Development serves as the lead federal entity for rural development needs, and administers program assistance through three agencies: Rural Housing Service, Rural Business-Cooperative Service, and Rural Utilities Service. Further information on USDA Rural Development can be obtained by contacting any USDA Service Center or by visiting USDA's web site at http://www.rurdev.usda.gov.

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