Alpha CEO won’t rule out possible future cuts

BRISTOL, Va. — Alpha Natural Resources Chairman and CEO Kevin Crutchfield is trying to navigate his large coal producing company through difficult times. Crutchfield addressed Alpha’s second quarter earnings with reporters Friday.

Alpha, the largest coal producer in West Virginia, reported a second quarter adjusted net loss of $129 million.

Crutchfield said Alpha continues to proactively address changing market conditions for coal. Alpha has cut production at several of its operations and Crutchfield said Friday that could continue.

“We think we’ve done an appropriate amount but it’s subject to change,” he said. “It’s a dynamic market place and if we need to make further adjustments we’re absolutely willing to do so.”

A number of the cuts have taken place in West Virginia including 160 mining jobs this summer at the company’s Justice No. 1 mine in Boone County. Alpha has also cut back production at its Liberty Coal Prep Plant in Boone County.

Crutchfield said the current market for export steam coal is uneconomic while the global market for metallurgical coal is oversupplied. He said there’s also an oversupply of thermal coal in domestic markets.

Crutchfield would not rule out other production cuts later this year.

“We’ve been proactive thus far and you can expect that kind of behavior going forward,” he said. “It’s a little too early to say right now (about future cuts) but we are willing.”

Crutchfield said Alpha is doing more than cutting jobs and production to reduce costs. He said a company-wide operations performance group is overseeing things like efficiency improvements, a maintenance initiative and central purchasing plans. He said those efforts could produce “substantial savings” for Alpha.

Crutchfield also spent some time Friday spotlighting his company’s new Running Right Leadership Academy that opened last month in Julian, Boone County.

“Our commitment to safety has never been stronger,” Crutchfield said.