Coal news and updates

Alpha posts $70.2 million loss in November, cuts more CAPP coal production

Alpha Natural Resources has cut more coal production after posting a $70.2 million net loss in November as it continues restructuring through Chapter 11 bankruptcy.

In court documents filed Friday, the Bristol, Virginia-based producer reported $175 million in coal revenues for November, with operating losses of $70.7 million.

In October, the company reported $184.8 million in coal revenues, with operating losses of $58.7 million.

Year to date, Alpha reported $2.43 billion in coal revenues, $1.29 billion in operating losses and a net loss of $1.4 billion.

Alpha, which filed for Chapter 11 protection in August, is also cutting more Central Appalachian coal production. The company had reduced its CAPP operation ahead of filing for bankruptcy and on Friday laid off workers at five thermal and metallurgical coal mines in West Virginia and Virginia.

In West Virginia, 66 workers were laid off at Marfork Coal's Slip Ridge and Ellis Eagle mines in Raleigh County, and 72 workers lost jobs at Elk Run Coal's Seng Creek and Shonk mines in Boone County.

Alpha said a section at each mine will be closed, but production will continue at a reduced rate.

The Seng Creek and Shonk mines produce metallurgical coal, while Slip Ridge and Ellis Eagle produce high-vol A coal primarily used as a thermal blender, the company said.

According to Mine Safety and Health Administration data, Seng Creek and Shonk produced a combined 832,208 st through three quarters this year and 979,068 in all of 2014, and Slip Ridge and Ellis Eagle produced a combined 630,818 st through three quarters this year and 957,780 st in all of 2014.

Alpha on Friday also laid off 35 workers at Knox Creek's Tiller No. 1 thermal mine in Tazewell County, Virginia, and idled production. The company in September issued a WARN notice ahead of the expected idling.

Tiller produced 342,187 st through three quarters this year and 551,400 st in all of 2014.

The Tiller mine is one 34 assets Alpha is currently looking to sell during its Chapter 11 reorganization. The company has set a bidding deadline for its assets of January 20, with an auction date, if necessary, of January 27.

source: http://www.platts.com