Notices were given Friday to 439 employees at Rockspring Development’s Camp Creek underground mine and processing lant in Wayne County, West Virginia, regarding the expected idling of those facilities based on the mine operator’s current assessment of market conditions.
Additionally, three other Alpha-affiliated mine operators announced last week that reductions in force were taking place at their locations due to sustained weak market conditions and government regulations that have challenged the entire Central Appalachian coal industry.
A total of 71 employees were affected.
Enterprise Mining's EMC No. 9 underground mine in Knott County, KY and Roxana Prep plant in Letcher County, KY reduced the workforce by 17. Knox Creek Coal's Tiller No. 1 underground mine in Tazewell County, VA eliminated 35 positions.
Mill Branch Coal's Dorchester and North Fork underground mines in Wise County, VA and Letcher County, KY reduced the number of workers by 19.
“These actions are being triggered by persistent weakness in US and overseas coal demand and depressed price levels, along with government regulations that are causing electric utilities to close existing coal-fired power plants and forego construction of new coal-fired capacity,” Alpha said in a statement.
“Excess supply of coal worldwide also has contributed to sustained price weakness.”
Alpha chairman and CEO Kevin Crutchfield said: “This is an unprecedented time in the coal industry and Alpha continues to take difficult but necessary actions to ensure that our production is aligned with the reduced market demand we see today and anticipate in the future.
“These actions are consistent with steps we have taken in the past to build a smaller but more sustainable portfolio of mining assets across our operational footprint.”
Alpha executive vice president of mining operations Keith Hainer said the action by the company is an indication that production and expenses continue to be carefully analysed to meet current and expected future demand.
“We are working to maintain flexibility and our coal-producing affiliates are rationalizing their operations and cost structure to manage effectively through these challenged markets,” he said.
“These are hard decisions because they affect good people, but these changes are necessary to help address the challenges that Alpha is facing.”
