UPDATE 1-Fire breaks out at Massey Energy W. Va. coal plant

* Massey says fire at coal preparation plant

* Says no cause of blaze known yet

* Says will use idled assets elsewhere to transport coal (Recasts with company statement, analyst comment, stock down)

NEW YORK, Aug 27 (Reuters) - Fire broke out at a coal preparation plant near Massey Energy Co's MEE.N mine complex in Logan County, West Virginia on Thursday, disrupting rail shipping operations, the company said.

Massey said no injuries were reported at the Bandmill preparation plant in Rum Creek, near Logan, West Virginia, and all workers are accounted for.

The report of the fire, the cause of which has not yet been determined, sent Massey stock tumbling 5.3 percent to $27.33 in late morning trade on the New York Stock Exchange; earlier, the stock fell as low as $26.85.

"We expect to minimize disruptions in service to our customers by utilizing idled assets elsewhere on the CSX (Corp (CSX.N)) rail system," Chief Executive Officer Don Blankenship said in a statement.

Richmond, Virginia-based Massey gave no more details; but according to WJZ television, a CBS affiliate in West Virginia, the blaze started around 3:30 a.m. EDT (0730 GMT) and firefighters were still at the scene at 8 a.m. EDT.

Jim Thompson, editor of the industry newsletter Coal & Energy Price Report, noted the fire comes at a time when coal producers in Central Appalachia have cut production to support coal prices.

He said, even if the preparation plant were destroyed, it would not affect actual coal production and the company would find alternative plants to prepare the coal for shipping to customers.

Massey, which produces around 40 million tons per year, took around 3.7 million tons of mostly steam, or thermal coal, from Logan County in 2007. "It's definitely a significant event for them (Massey), but in the big picture, given the glut of coal on the ground, it won't move the needle much.

"They will just have to send the coal elsewhere," said Thompson.

Other coal stocks fell on Thursday. Consol Energy Inc (CNX.N) was down 4.6 percent at $37.40, Peabody Energy Corp (BTU.N) fell 3.4 percent to $33.18 and Arch Coal Inc (ACI.N) was 3.2 percent lower at $17.09.

Thompson, along with analyst William Burns of Johnson Rice in New Orleans, said the slide was probably a result of "mixed signals" from China on whether it would increase coal exports.

(Reporting by Steve James, editing by Gerald E. McCormick)