MARKETS

Pinnacle and Oak Grove downsizing

PINNACLE and Oak Grove longwall mines will undergo restructuring and workforce reductions, PinnOak Resources announced this week.

Staff Reporter

Pinnacle Mining located at Pineville, West Virginia, will loose about 182 employees, whilst at Oak Grove Resources, located near Birmingham, Alabama, 171 employees will be dismissed.

"Today's decision is difficult for each affected employee, their families and the local communities where PinnOak operates. Our goal is to focus on and resolve current staffing issues, longwall development timing and inventory considerations," PinnOak CEO Benjamin Statler told Associated Press (AP).

Statler said PinnOak hoped to resolve most of the issues within six months, when they will then assess bringing some of the employees dismissed back to the mines.

Pinnacle longwall produced 3.5 million tons of coking coal in 2002, whilst the Oak Grove mine produced 2.0 million tons of coking coal last year.

AP said approximately 85 percent of production is under contract, mainly with domestic and international steel buyers.

PinnOak Resources LLC was formed this year by Questor Management Company and current CEO Benjamin Statler. PinnOak purchased Pineville and Oak Grove mines from United States Steel Corporation in June.

Questor specialises in acquiring significant positions in companies that are underperforming or have not met their owners' expectations, but offer the potential for superior returns with the application of appropriate levels of capital and management expertise.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production

editions

Mining Magazine Intelligence Automation Report 2023

An in-depth review of operations using autonomous solutions in every region and sector, including analysis of the factors driving investment decisions

editions

Mining Magazine Intelligence Exploration Report 2023 (feat. Opaxe data)

A comprehensive review of current exploration rates, trending exploration technologies, a ranking of top drill intercepts and a catalogue of 2022 Initial Resource Estimates and recent discovery successes.