Patriot Coal to Cut Production of Steelmaking Coal

Patriot Coal Corp. (PCXCQ), the U.S. mining company that’s reorganizing under bankruptcy protection, said it would temporarily idle mines to cut 85,000 tons of output per month for an indefinite period.

Production of metallurgical coal will be cut at the Kanawha Eagle, Rocklick and Wells mines in southern West Virginia, St. Louis-based Patriot said in a statement today. The company said 250 employee and contractor positions will be “impacted” by the actions.

“These actions are designed to bring our production in line with expected sales and focus capital resources on our lowest cost operations as we proceed with our reorganization,” Chief Operating Officer Bennett K. Hatfield said in the statement.

Patriot filed for bankruptcy in July, saying milder winters and a shift to natural gas sent demand for coal to a 24-year low.

To contact the reporter on this story: Sonja Elmquist in New York at selmquist1@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

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