Coal industry tries to hang on

CHARLESTON, W.Va. –– Monday wasn’t the kind of day anybody in the coal industry would relish.  As President Obama prepared to unveil the final decision of his administration for rules on existing coal fired power plants, one of the nation’s largest mining companies filed for Chapter 11 bankruptcy.

“It just keep coming,” said West Virginia Coal Association President Bill Raney. “This administration has completely kicked the props out from under the West Virginia coal industry.”

Alpha Natural Resources, the state’s largest coal company and the nation’s largest supplier of metallurgical coal, filed for bankruptcy protection in U.S. Bankruptcy Court in Richmond, Virginia.   Company Chief Executive Officer Kevin Crutchfield held high hopes the company would be able to restructure debt and emerge as a stronger company.

“We certainly have the confidence that will happen and we’ve seen that happen with other companies,” Raney said of the Alpha filing. “It’s just a challenging time right now and we anticipate and certainly hope and pray is that we’ll wind up with a stronger, more viable industry.”

The last seven years have been a crusher for the industry.  New policies from the White House along with increased competition from the natural gas industry have been double hits to the industry.  Could the coal industry have better prepared leading up the present difficulties?  President Obama in his first campaign for the office made no effort to disguise his plans to reduce the use of coal and to increase the cost of power generation in America.

“I don’t think we felt like anybody would ever be so heartless as to do that,” said Raney. “Picking winners and losers in the energy field like that, particularly when it’s so devastating to the Appalachian states.”

Raney said the difficulty started with denial of new mining permits which led to revoking permits already issued in southern West Virginia.  The next step was a series of carbon emission rules.  The most recent and arguably the most detrimental to the coal industry was issued Monday which called for the reduction of emissions from coal fired power plants by 30 percent over 15 years.  The White House in issuing the rules indicated it would give states more time to comply.   Time isn’t what the coal industry needed in Raney’s view.

“All that does is perpetuate the uncertainty,” said Raney. “Banks will not lend money to people in an uncertain world.”





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