The deal would be the state-owned company's first asset purchase in the U.S.
Kolkata-based Coal India is on the hunt for acquisitions to meet growing demand from power stations and steel mills in the fast-growing Asian economy.
"Being a state-run company, they have a responsibility to meet this demand," said Alex Mathews, head of research at Geojit BNP Paribas Financial Services. "The timing is right now, as with recovering economies, prices of assets will only rise."
Coal India and Massey Energy both declined to comment to Bloomberg News.