INTERNATIONAL COAL NEWS

Arch makes cuts to production, staff

TWO Kentucky mines will be idled and another one in the state will have its production cut, resul...

Donna Schmidt

Arch spokeswoman Kim Link said two of the company’s contract mining operations at the Cumberland River complex would be immediately suspended and the Hazard complex would have a “small workforce reduction” because of the idling of one of its six surface spreads.

Cumberland River will continue to operate its two captive mines, Trace Fork and Pine Branch, with a staff of 240.

Hazard’s remaining five surface spreads will be operational with a 250-miner workforce.

Link said Arch made the moves, which will impact about 65 employees and about 45 contractors in total, because of “difficult and persisting coal market conditions”

Eligible laid-off workers will be offered severance packages.

It is not clear if the mine closures are permanent.

Kentucky Coal Association president Bill Bissett told local television news station WYMT that the region had been at the center of what continued to be rough waters for the coal industry.

“We’ve really kind of been the epicenter of what’s been this recent downturn in a lot of the market,” he said.

“You’ve seen this drastic decrease since January 1, 2012.”

According to some estimations, the jobs lost during that period top 5000.

Additionally, state officials estimate about $88 million has been collected in coal severance tax money in the state over the past two years and it too continues to dwindle as mines are idled.

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