Production cutbacks at Alpha Natural Resources mines in West Virginia will result in 152 people losing their jobs and another 182 being offered jobs at other Alpha locations.
On Friday, Feb. 3, after the trading markets closed, Alpha announced it would curtail production at some mines in West Virginia and Kentucky in response to market conditions.
Ted Pile, vice president of corporate communications for Alpha Natural Resources, provided this list of company operations in West Virginia that are affected by the cutbacks:
- The No. #2 Gas mine in Kanawha County is being idled immediately, as is the Randolph Mine in Boone County. Both are underground.
- The Black Castle surface mine in Boone County is reducing its work hours.
- The Camp Branch surface mine in Logan County is reducing work schedules.
- The Progress/Twilight surface mine in Boone County is cutting back work schedules.
- The Alloy Powellton mine in Fayette County is eliminating one underground section.
In Kentucky, the Cave Spur and Perkins Branch underground mines are idled immediately. Both are in Harlan County. The Coalgood surface mine in Harlan County will be phased out by the middle of this year, and the Big Branch West surface mine in Knott County will close in early 2013.
The changes will displace 168 employees in Kentucky. Another 52 have been offered transfers to other Alpha operations.
Combined, 320 people will lose their jobs and 234 have been offered transfers.
"All displaced miners were offered two months' continued pay and benefits, which hopefully will help ease the transition as they look for work," Pile wrote in an email to The State Journal.
In its news release issued Friday evening, Alpha said, "When completed, the adjustments are expected to reduce annual coal production by approximately 4.0 million tons, most of which originates on the CSX rail system. The total includes approximately 2.5 million tons of thermal coal and 1.5 million tons of lower quality, high-volatility metallurgical coal. Eastern Kentucky operations will scale back thermal coal production by about 1.5 million tons while the remaining reductions will occur in southern West Virginia."
A year ago, the coal industry was counting on strong sales of met coal based on world demand.
"The market for lower-grade metallurgical coals (such as what the Randolph mine produces) has really dropped off faster than for higher-quality met coal," Pile wrote to The State Journal. "The debt crisis in Europe has softened that market, and Europe is our largest export destination for met coal."
Friday's news release said thermal coal production is being reduced for several reasons.
"Alpha's Central Appalachian businesses are seeing more electric utilities switch from thermal coal to natural gas to take advantage of gas prices at 10-year lows. A series of federal regulatory actions also have prompted utilities to implement plans for shutting down a number of generating stations that have traditionally run on coals sourced from Central Appalachia," the news release said.
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