Patriot Coal To Reduce Coal Production
ST. LOUIS, April 23, 2014
ST. LOUIS, April 23, 2014 /PRNewswire/ --Patriot Coal Corporation (OTC Pink:
PATCA) today issued WARN Act notices at its Wells mining complex located near
Wharton, West Virginia, and also at its Corridor G mining complex located near
Danville, West Virginia. The Wells complex, which includes the Black Stallion
Mine, CC10 Mine, and Wells preparation plant, employs 450 people and produced
1.4 million tons of metallurgical coal in 2013. The Corridor G complex, which
includes the Hobet 21 Mine and Beth Station preparation plant, employs 397
people and produced 2.3 million tons of thermal coal in 2013.
Pursuant to the WARN Act, the Company today gave 60-day notice of potential
layoffs to all employees that could be affected.
"These actions are an unfortunate but necessary step to align Patriot's
production with expected sales," said Patriot President and Chief Executive
Officer Bennett K. Hatfield. "Both metallurgical and thermal coal markets
continue to be challenging, with pricing at levels well below production costs
at many Central Appalachian mines. Despite the savings we achieved in our
reorganization, the production costs of these mines exceed today's depressed
prices, necessitating these actions."
During the 60 day period, mine management at both locations will be evaluating
operations and staffing to assess their ability to produce coal at a cost
below projected sales prices. The scope of the anticipated downsizing will be
communicated at the conclusion of that process.
About Patriot Coal
Patriot Coal Corporation is a producer and marketer of coal in the eastern
United States, with 10 active mining complexes in Appalachia and the Illinois
Basin. Patriot ships to domestic and international electricity generators,
industrial users and metallurgical coal customers, and controls approximately
1.8 billion tons of proven and probable coal reserves.
Certain statements in this press release are forward-looking. These
statements involve certain risks and uncertainties that may be beyond the
Company's control and may cause actual future results to differ materially
from current expectations. Factors that could affect the Company's results
include, but are not limited to factors detailed from time to time in the
Company's reports and other information posted on its website or included in a
press release. The Company undertakes no obligation to update or revise
forward-looking statements to reflect events or circumstances that arise after
the date of this press release or to reflect the occurrence of unanticipated
SOURCE Patriot Coal Corporation
Contact: Janine Orf, (314) 275-3680, firstname.lastname@example.org
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