Walter Industries Inc coal manufacturer said that its board permitted a plan to start a new coal mine among 400,000 tons of annual capability, growing the company's United Land subsidiary's surface mining operations.

United Land will spend about USD 30 million to increase the mine, which will use around 50 people and will be placed in Jefferson County. The new mine is to be called as Flat Top Mine, is a 600 acre surface coal mine with capital of about 2.3 million tons of steam and industrial coal on land hold by the company.

Expansion of the mine will start instantly, and, with approval already in place, the coal is likely to be offered for sale by May 2009. The board as well voted to double the company's quarterly dividend to 10 cents per share.