Patriot Coal shutting down two western Kentucky complexes

Patriot Coal (OTC Pink: PATCA) said Dec. 28 that it will idle the Highland Mine located near Henderson, Kentucky, and the Dodge Hill Mining Complex located near Sturgis, Kentucky, effective Dec. 29.

The Heritage preparation plant and the barge loading terminal on the Ohio River are expected to continue processing and shipping coal from onsite stockpiles. A decision regarding future coal production at these complexes will be made in conjunction with the company’s ongoing review of strategic options, said the company in the brief statement.

The Dodge Hill mining complex is sourced by one company-operated underground mine, Dodge Hill No. 1, utilizing continuous mining methods. All coal is sold in the thermal market and transported via truck to a barge loading facility on the Ohio River. Coal at the Dodge Hill mining complex is produced from the Kentucky No. 6 seam. The employees at the Dodge Hill mining complex are not represented by a union.

The Highland mining complex is sourced by one company-operated underground mine, Highland No. 9, utilizing continuous mining methods. All coal is sold in the thermal market and is transported via barges loaded on the Ohio River. Coal is produced from the Kentucky No. 9 seam. Certain employees at the Highland complex are represented by the UMWA.

Major customers for these operations include Louisville Gas & Electric and Kentucky Utilities.

Patriot Coal, which reorganized in bankruptcy earlier this year, 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.