According to officials, the biggest coal producer in the eastern United States will shut down its Kentucky facility permanently.
Nearly 300 people will be impacted by Alliance Resource Partners’ and Excel Mining’s stated plans to cease operations in Pikeville on November 15.
“The decision to issue WARN notices at the MC Mining Complex was not made lightly,” Joseph W. Craft, III, chairman, president, and CEO, stated. “Despite our continued efforts to navigate challenging geology and market conditions, persistent weakness in coal demand, compounded by some delays in timely payment for committed coal sales, has necessitated this difficult but necessary step to begin winding down production operations. We deeply regret the impact this decision has on our employees, their families, and their communities.”
According to reports, Pike County is the second-largest producer of Kentucky coal, with eastern Kentucky continuing to be the leading producer. Nearly 35% of Pike County’s coal jobs will be lost as a result of the shutdown, according to the Kentucky Energy and Environment Cabinet.
“One out of five U.S. operating coal mines are located in Kentucky, and it has more mines than in any other state except for West Virginia,” the U.S. Energy Information Administration stated.
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According to representatives, the MC Mining Complex started cutting coal production by “two production units” on November 15.
“Combined with current inventory, mining from the two production units will continue to supply existing contractual commitments before ceasing in anticipation of the mine’s permanent closure,” according to a news release. “Excel 1 employees not involved in the reduced production of coal will focus efforts on reclamation activities throughout the MC Mining Complex.”
