James River Coal idling mines, reducing production - WBOY - Clarksburg, Morgantown: News, Sports, Weather

James River Coal idling mines, reducing production

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  • Many WV coal counties losing revenue

    Many WV coal counties losing revenue

    Monday, August 8 2016 10:15 AM EDT2016-08-08 14:15:05 GMT

    As Appalachian coal production continues its drastic decline, West Virginia’s coal-producing counties are  not only losing people as lifelong residents are forced to flee their homes in order to find work, but in many cases, they’re also relinquishing millions of dollars from their budgets.

    As Appalachian coal production continues its drastic decline, West Virginia’s coal-producing counties are  not only losing people as lifelong residents are forced to flee their homes in order to find work, but in many cases, they’re also relinquishing millions of dollars from their budgets.

RICHMOND, Va. (AP) — James River Coal Co. is idling mines and reducing coal production by 3 million tons in response to weak demand.

The Richmond-based company mines thermal coal used for power generation and metallurgical coal that's used to produce steel. It has operations in Kentucky, West Virginia and Indiana.

In reporting a fourth-quarter loss Thursday, James River said it has idled five underground mines, two preparation plants and one load-out facility. It also has reduced production at three surface mines.

The company says the moves impact about 400 employees and contractors.

Coal producers are being hit by a double whammy of weak demand. Utilities need less coal to produce electricity because of mild weather and lower power generation, while construction overseas has slowed the appetite for coal to make steel.

 

Copyright 2013 The Associated Press

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