Penn Virginia Resource Partners L.P. of Radnor said it bought 29 million tons of coal reserves and 56 million board feet of hardwood timber in Virginia and Kentucky for $24.5 million.

The coal sites have been leased to International Coal Group Inc. It will sell the coal in the steam/utility and the metallurgical/steel markets.

Penn Virginia will manage the timber properties, with a contractor harvesting the wood.

The company said it expects cash flow from coal royalty payments and sales of the timber to be about $2.4 million in 2009. Penn Virginia had 2007 revenue of $549 million.

The seller of the coal and timber properties, a private party, was not identified.

Penn Virginia manages coal properties and related assets, and it operates a natural gas gathering and processing business.

Company shares were priced at $27.40 in late-morning trading, up $0.44 from yesterday's close.