Officials announced that the biggest coal producer in the eastern U.S. will shut down its Kentucky facility for good.
On November 15, Alliance Resource Partners and its subsidiary, Excel Mining, revealed intentions to cease operations in Pikeville, impacting close to 300 workers.
“The decision to issue WARN notices at the MC Mining Complex was not made lightly,” Joseph W. Craft, III, chairman, president, and CEO, said.
“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,” he added.
Recent findings indicate that eastern Kentucky continues to lead in coal production within the state, with Pike County holding the position of the second-highest producer. The Kentucky Energy and Environment Cabinet reports that the shutdown will result in the loss of almost 35% of coal employment in Pike County.
The U.S. Energy Information Administration reported that Kentucky is home to one-fifth of the operating coal mines in the country, trailing only West Virginia in the total number of mines.
Starting November 15, the MC Mining Complex has initiated a decrease in coal production by “two production units,” according to representatives.
“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,” a news release said. “Excel 1 employees not involved in the reduced production of coal will focus efforts on reclamation activities throughout the MC Mining Complex.”
The timeline for the mine’s permanent closure remains uncertain.