TORONTO (miningweekly.com) – Patriot Coal's Paint Creek Complex temporarily idled coal output at the Samples surface mine and Winchester underground mine on Sunday, the US miner advised on Monday.
The struggling miner said the action was necessary in response to high coal inventory levels, driven by a combination of a CSX rail service disruption last month and continued weakness in demand for coal.
Appalachian thermal coal markets had been particularly hard hit over recent months by the combined impacts of coal-fired plant closures, driven by the US Environmental Protection Agency’s stricter emissions regulations, low-cost natural gas and fewer export opportunities.
The operation would continue to process and ship coal to customers from on-site stockpiles throughout the idle period, with coal output scheduled to resume in about three to four weeks.
Further, the Samples mine downsized the number of its production units to reflect the reduced demand for thermal coal. An estimated 35 positions were permanently eliminated.
The Paint Creek Complex had about 400 Patriot subsidiary employees and was located near Cabin Creek, West Virginia.