Alpha Natural Resources Affiliates to Downsize Central Appalachian Mining Operations
BRISTOL, Va., May 22, 2015 /PRNewswire/ -- Operating affiliates of Alpha Natural Resources, Inc. (NYSE: ANR) have notified employees today of the expected idling of the mining and processing operations where they work. In accordance with requirements of the Worker Adjustment and Retraining Notification (WARN) Act, notices were given today to 439 employees at Rockspring Development's Camp Creek Underground Mine and Processing Plant in Wayne County, West Virginia, regarding the expected idling of those facilities based on the mine operator's current assessment of market conditions.
Additionally, three other Alpha-affiliated mine operators announced last week that reductions in force were taking place at their locations due to sustained weak market conditions and government regulations that have challenged the entire Central Appalachian coal industry. A total of 71 employees were impacted:
- Enterprise Mining's EMC #9 underground mine in Knott County, KY and Roxana Prep plant in Letcher County, KY reduced the workforce by 17.
- Knox Creek Coal's Tiller #1 underground mine in Tazewell County, VA eliminated 35 positions.
- Mill Branch Coal's Dorchester and North Fork underground mines in Wise County, VA and Letcher County, KY reduced the number of workers by 19.
These actions are being triggered by persistent weakness in U.S. and overseas coal demand and depressed price levels, along with government regulations that are causing electric utilities to close existing coal-fired power plants and forego construction of new coal-fired capacity. Excess supply of coal worldwide also has contributed to sustained price weakness.
Alpha's Chairman and CEO Kevin Crutchfield said, "This is an unprecedented time in the coal industry and Alpha continues to take difficult but necessary actions to ensure that our production is aligned with the reduced market demand we see today and anticipate in the future. These actions are consistent with steps we have taken in the past to build a smaller but more sustainable portfolio of mining assets across our operational footprint."
Alpha Executive Vice President of Mining Operations, Keith Hainer, echoed that today's action is an indication that production and expenses continue to be carefully analyzed to meet current and expected future demand. "We are working to maintain flexibility and our coal-producing affiliates are rationalizing their operations and cost structure to manage effectively through these challenged markets," Hainer said. "These are hard decisions because they affect good people, but these changes are necessary to help address the challenges that Alpha is facing."
About Alpha Natural Resources
Alpha Natural Resources is one of the largest and most regionally diversified coal suppliers in the United States. With affiliate mining operations in Virginia, West Virginia, Kentucky, Pennsylvania and Wyoming, Alpha supplies metallurgical coal to the steel industry and thermal coal to generate power to customers on five continents. Alpha is committed to being a leader in mine safety with our Running Right safety process, and an environmental steward in the communities where its affiliates operate. For more information, visit Alpha's website (www.alphanr.com).
SOURCE Alpha Natural Resources
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