Alpha Natural Resources to reduce coal production in Central Appalachia

Monday, 06 February 2012 01:34:22 (GMT+2)

Bristol, Virginia-based coal producer Alpha Natural Resources announced on Friday that it will be reducing coal production at some of its mines in the Central Appalachia region due to a decreased demand for coal. Alpha subsidiaries in Kentucky and West Virginia will halt operations at 4 mines immediately and at two other mines in the near future, while four other mines will change work schedules and cut back on the number of production crews. A total of 10 mines will be affected by the changes. Management and Human Resources at Alpha also noted that after transfer opportunities have been filled, about 350 employees will be displaced.

The halt in production will reduce the amount of coal by about 4 million tons--1.5 million tons attributed to metallurgical coal.

Kevin Crutchfield, Alpha Natural's CEO stated: "Several mines are encountering weak demand for their products. We examined all options but in the end these operations had to do what was necessary to preserve a sustainable business plan in a challenging environment. In the days ahead, we will be examining all aspects of costs across our entire value chain, including cost reduction reviews with all key stakeholders."

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