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Patriot to close WV complex

FINANCIALLY embattled producer Patriot Coal has confirmed it will idle its Logan County complex i...

Donna Schmidt

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The closure of the complex, which includes the Guyan surface operation, the Fanco preparation plant and a rail loadout, will cut the miner’s thermal production target by about 2 million tons per annum.

Officials said the 60-day notice mandated by the federal WARN Act outlines had been issued to all of those impacted by the move, and about 50 workers could retain employment with Patriot with transfers to other subsidiary locations.

“This is an unfortunate but necessary step to align Patriot's production with expected sales,” president and chief executive officer Bennett Hatfield said.

“Despite the substantial progress being made in the Patriot reorganization, we still have to contend with the industry-wide challenge of coal prices that have fallen well below production costs at many central Appalachian mines.

“Thermal coal markets are extremely weak due to low natural gas prices and costly regulatory changes that have reduced coal-fueled electricity generation capacity.”

United Mine Workers of America president Cecil Roberts spoke out on behalf of the complex’s union members, calling the producer’s decision “disappointing, though not unexpected”

“The company had already announced its intention to close this complex in the near term, however the continued depression in the coal market led to this action being taken sooner,” Roberts said, noting that some jobs would be available at the Hobet mine in Boone County and others would be eligible for retirement.

“This makes it even more important that we continue our fight to secure the long-term retirement health care benefits our members have earned.”

Roberts noted that workers at the mine, a former Arch Coal operation, were promised retiree healthcare under its previous ownership.

“We will continue to work in Congress, argue in court, and march in the streets until our struggle for fairness and justice is won, and we have a long-term funding solution for their benefits,” he said.

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