BRISTOL, Va. — Alpha Natural Resources announced Monday it would not idle eight coal mining operations in southern West Virginia as previously considered, keeping 750 workers on the job.
The largest coal operator in the Mountain State announced July 13 possible plans to furlough employees at 11 different surface mine sites because of market conditions at federal EPA regulations. Eight of the 11 received WARN notice extensions Sept. 26 and Alpha said Monday the extensions had expired and the eight operations would remain open.
Alpha Chairman and CEO Kevin Crutchfield credited the mine operators and their workers for cutting costs.
“Many of these sites have made significant progress in improving efficiencies and finding cost savings. They were proactive in presenting ideas that helped move the mines toward enhanced contributions to earnings before interest, taxes, depreciation and amortization (EBITDA) while continuing to operate safely and in an environmentally sound way,” Crutchfield said in a prepared release.
Alpha said the operations remaining open include Highland Mining’s Superior, Reylas, Freeze Fork and Trace Fork surface mines in Logan County; the North surface mine in Mingo and Logan counties; Black Castle Mining’s surface mine in Boone County; and Republic Energy’s Republic and Workman Creek surface mines in Raleigh County. Alpha closed two mines after the original WARN deadline and left one another operating without an extension.
Alpha also announced Monday sales opportunities have improved at the some of the eight locations but cautioned the market for coal is more volatile.
“The market is moving toward a spot market, away from longer-term agreements that coal suppliers and customers have worked with in the past,” Alpha President Paul Vining said. “We’re certainly mindful of the low stockpiles some utilities have on hand and are trying to ensure we are ready to respond should demand increase.”
Alpha said the long term futures of the eight operations “will continue to depend upon market prices and demand.”