MAN, W.Va. –
Operations at Patriot Coal’s Logan
County
The
company announced plans Tuesday to idle operations at their facility near
Man and reduce thermal coal production by approximately two million annual
tons.
The
operations expected to be idled include the Guyan surface min and the Fanco
preparation plant and rail load out.
In a
statement released Tuesday, Patriot President and Chief Executive Officer
Bennett Hatfield said the decision is a tough one but a necessary one to align
Patriot’s production with expected sales.
“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,” stated
Hatfield.
The
decision is expected to impact around 250 employees.
In his own
statement, United Mine Workers of America (UMWA) International President Cecil
Roberts said the decision is disappointing, but 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,” stated Roberts.
Company
officials said they are currently working to place impacted employees into open
positions at other Patriot subsidiary operations. The company anticipates
around 50 employees will be offered jobs at those locations.
Roberts
said other employees will be eligible for retirement and will choose that path.
He said this move shows the importance of the union to continue its fight
against Arch Coal to secure long-term retirement health care benefits for its
members.
“This
is a former Arch Coal mine, and Arch made the promise of retiree health care to
these miners and their spouses,” Roberts stated in the release. ”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.”
The
facility is scheduled to be idled in two months. All impacted employees were
notified of the decision Tuesday.
