Patriot Coal may shut western Kentucky mining operations

Patriot Coal (OTC Pink: PATCA) on Dec. 5 issued WARN Act notices to all employees at the Highland mining complex located near Henderson, Kentucky, and the Dodge Hill mining complex located near Sturgis, Kentucky.  

In total, the Highland and Dodge Hill complexes employ approximately 670 people and produced 3.9 million tons of thermal coal in 2013.

Low natural gas prices, together with EPA regulations designed to curtail low-cost coal-fueled energy, continue to drive down thermal coal prices, resulting in operating losses at many mines across the United States, Patriot said. Company management is evaluating various strategic options for Highland and Dodge Hill that may result in substantial workforce reductions within the next 60 days. 

Patriot Coal is a producer and marketer of coal in the eastern United States, with 10 active mining complexes in Appalachia and the Illinois Basin.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.