TORONTO (miningweekly.com) – Mere months after announcing its emergence from an 18-month-long Chapter 11 reorganisation as a well-capitalised private company, US miner Patriot Coal on Wednesday announced that it had issued 60-day notices of potential layoffs to 847 West Virginia workers at two mining complexes.

The corporation said it had issued WARN Act notices at its Wells mining complex located near Wharton, and also at its Corridor G mining complex, located near Danville.

North American coal miners are dealing with weak prices amid low demand for thermal electricity-making coal and metallurgical steelmaking coal as competition from the emerging shale gas industry impacts on markets.

On Tuesday, diversified Canadian miner Teck Resources announced that it would reduce its global workforce by 5%, or 600 workers, as it sought to cut costs amid sagging profit and low commodity prices.

Last week, coal miner Walter Energy said that it planned to idle its Canadian coal mines in the face of weak metallurgical coal prices, placing more than 695 jobs on the line. Earlier this month, US coal miner James River Coal filed for Chapter 11 bankruptcy protection after it too had been grappling with weak coal prices for months.

The Wells complex, which includes the Black Stallion mine, CC10 mine and the 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.

"These actions are an unfortunate but necessary step to align Patriot's production with expected sales. Both metallurgical and thermal coal markets continue to be challenging, with pricing at levels well below production costs at many Central Appalachian mines," Patriot president and CEO Bennett Hatfield said.

He added that despite the savings the company achieved in its reorganisation, the production costs of these mines exceeded today's depressed prices.

During the 60-day period, mine management at both locations would be evaluating operations and staffing to assess their ability to produce coal at a cost below expected sales prices.