Alliance Coal announced this week that it is expanding its regional headquarters in Lexington.
The company is buying land in Beaumont Circle for a new building to accommodate the company's growth.
In a release about the expansion, Commerce Lexington said that the overall investment is estimated to be $8.3 million in land, building, equipment and start-up costs.
The project will add 25 jobs with an average wage of $65,000 a year. It will also retain 65 jobs.
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Alliance was approved for state incentives at the June Kentucky Economic Development Finance Authority board meeting.
Alliance's chairman and chief executive, Joe Craft, is one of the largest donors to University of Kentucky athletics.
The company's Web site said that Alliance operates 11 underground mining complexes in five states — Illinois, Indiana, Kentucky, Maryland and West Virginia — and also operates a coal-loading terminal on the Ohio River at Mount Vernon, Ind.
Based in Tulsa, Okla., Alliance employs more than 4,100 people.