More than 1,100 coal miners and
mine staff could possibly be laid off at eleven surface mine sites and
supporting locations in southern West Virginia — all operated by subsidiaries
of Alpha Natural Resources — before the end of October.
On Thursday afternoon, workers were
notified of the possibility of layoffs at the following locations:
Highland Mining’s Superior, Reylas,
Freeze Fork and Trace Fork surface mines in Logan County and the North surface
mine in Mingo and Logan counties; Black Castle Mining’s surface mine in Boone
County; Independence Coal’s Twilight surface mine in Boone County; Alex
Energy’s Edwight surface mine in Raleigh County; Republic Energy’s Republic and
Workman Creek surface mines in Raleigh County and Pioneer Fuel’s Ewing Fork #1
surface mine in Kanawha and Fayette counties.
The layoffs, which have not yet
started, could affect preparation plants and other support operations as well.
In a statement, Alpha officials
said the possible layoffs were “due to sustained weak market conditions and
government regulations that have challenged the entire Central Appalachian
mining industry.”
According to Alpha, the
international price for coal shipped to power plants in Europe
is at a four-year low while prices for metallurgical coal, used to make steel,
are down more than 20 percent in the past year. Company officials said the
demand for coal has dropped because of low natural gas prices, competition from
other coal sources, and new regulations from the EPA for coal-fired power
plants.
“Many mines in the region have done
a great job finding ways to reduce costs and remain economically viable in this
unprecedented business climate, but some Central Appalachian mines haven’t been
able to keep up with the fast paces at which coal demand has eroded and prices
have fallen,” said Paul Vining, president of Alpha, in a statement.
“So, our operations managers have
to take a hard and serious examination whether they can sustain a number of
mines and related operations by finding additional cost reductions and whether
the business will be there to support them in the year ahead.”
So far this year, the Alpha mines
receiving WARN notifications on Thursday have produced 4.2 million tons of
thermal and metallurgical coal.
Governor Earl Ray Tomblin issued
the following statement following Thursday’s announcement from Alpha Natural
Resources:
“The potential for layoffs and mine
closures are heartbreaking and frustrating for our miners, their families and
the communities in which they live. They depend on these jobs to keep food on
the table and a roof overhead. My administration will closely monitor the
situation and we stand ready to provide whatever assistance our miners and
their families may need during this difficult time.
“We recognize market trends can
play a part in these potential closures; however these actions also show the
real-world impact of the regulatory environment in which industry must operate.
Today’s announcement, in part related to power plant closures as a result of
past EPA regulations, is why we remain concerned about the EPA’s current
proposals regarding CO2.
“For years, we have tried to warn
the EPA of the consequences of its irresponsible mandates and today, our fears
have unfortunately become our reality. I again urge the EPA to reconsider its
proposed plan and realize the real impact these new rules have on West Virginia
The Alpha announcement continues a
trend in southern West Virginia
Earlier this year, 75 people were
laid off at two Patriot Coal mine sites in Boone
County — the Wells Complex in Wharton
and the Corridor G Complex near Danville
In June, Cliffs Natural Resources issued a
notice of preliminary plans to idle the Pinnacle Mine in 