Two of West Virginia's largest coal operators are set to lay off more than 2,200 miners, according to media reports.
Alpha Natural Resources Inc. announced Friday afternoon it had notified 439 employees of its Rockspring Development Camp Creek Underground Mine and Processing Plant in Wayne County of plans to idle the facility due to current market conditions.
Separately, coal company Murray Energy Corp., West Virginia's sixth-largest employer, is expected to announce a massive round of layoffs, including workers in northern West Virginia mine operations, as early as this weekend.
Potential layoff notices were given under the federal Worker Adjustment and Retraining Notification, or WARN, Act. Alpha officials said the action was triggered by slumps in domestic and international coal prices and demand.
"This is an unprecedented time in the coal industry and Alpha continues to take difficult but necessary actions to ensure that our production is aligned with the reduced market demand we see today and anticipate in the future," company chairman and CEO Kevin Crutchfield said in a press release. "These actions are consistent with steps we have taken in the past to build a smaller but more sustainable portfolio of mining assets across our operational footprint."
The Wall Street Journal, citing "a person familiar with the matter," reported Friday that Murray Energy is expected to lay off about 1,800 workers, or roughly one-fifth of its workforce.
The layoffs are expected to come at nine locations mostly located in northern West Virginia and Ohio.
The Journal reported that company CEO Robert Murray made the layoff decision Wednesday following a 12-hour meeting with operations managers. The paper cited a source as saying the cuts were much bigger than those that previously being mulled because of "growing concerns about the slumping market for thermal coal."
The paper reported Monongalia County Coal Co. in north-central West Virginia will see the largest number of layoffs. The mine had already been idled earlier this year, leaving several hundred miners out of work.
Murray Energy has been spending a lot of money to rapidly expand its footprint in recent years, acquiring operations from companies that were trying to downsize or shed their coal operations.
The company executed a nearly $3.5 billion transaction in 2013 to acquire five West Virginia mines from CONSOL Energy Inc., which was refocusing itself toward its natural gas operations. It also recently completed a $1.4 billion purchase of a controlling stake in Illinois basin miner Foresight Energy. Murray had initially sought a much larger deal with Foresight, but downsized the transaction after failing to raise enough cash for the larger deal.
Gov. Earl Ray Tomblin issued the following statement:
"Additional layoffs and mine closures are heartbreaking for our miners, their families and the communities in which they live. These cutbacks affect more than just those directly employed — they affect suppliers, support services and retailers whose businesses depend on these companies and their employees.
"We recognize market forces play a large role in these decisions; however, the market is also being forced to react to overreaching regulations from the EPA. For years, we have warned the EPA of the consequences of its irresponsible mandates. We will continue to oppose EPA policies that have devastating impacts on West Virginia miners, their families and our communities.
"At the same time, we will continue to reach out to displaced miners and their families to offer support and retraining assistance through Workforce West Virginia programs. We are creating new jobs in West Virginia, and we are committed to ensuring all West Virginians have access to the education and training they need to not only fill these positions but secure a bright future in the Mountain State now and for years to come."
U.S. Sen. Joe Manchin, D-W.Va., issued the following statement:
“First, my heart goes out to the miners who lost their jobs and the families who depended on those jobs, and to all the Americans who will pay higher energy prices because this country lacks an energy policy that fully uses all of our domestic resources to benefit our great country.
“Our coal companies have ridden the ups and downs of the market for many years, but they can’t be expected to fight their own government, too. The difference between those times and now is that companies didn’t have to deal with the overreaching of an EPA that makes it impossible to build on any certainty into the future.
“Especially at a time when our economy is so fragile and good-paying jobs are hard to come by, our federal government must start working with us and not against us. There’s a balance to be found between the environment and the economy, and the EPA has worked very hard to avoid finding that balance.
“As senator, I will continue to work hard with members of both political parties to reverse the EPA decisions that are jeopardizing not only our coal industry, but our way of life. One of my highest priorities is to get this Congress to rein in EPA overreach. I’m also going to fight to make sure that we have an energy policy that works and uses all our domestic resources for the benefit of this country. That’s the only thing that makes sense to me and the people of West Virginia, and that’s the only way we can keep hardworking miners on the job.”
U.S. Senator Shelley Moore Capito, R-W.Va., issued the following statement:
“Today’s announcement is a stark reminder of the impact that misguided federal policies have on the lives of real people. The administration’s continued overreach has contributed to thousands of coal miners losing their jobs in West Virginia and our neighboring states, harming local economies and families.
“In West Virginia, the attack on coal mines also reduces revenues for education programs, roads and other public services. As Chairman of the Subcommittee on Clean Air and Nuclear Safety, I will continue to lead the fight against these regulations that have been devastating to our state.”
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