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Alpha Subsidiary Shuts Down Two Nicholas Mines, Reduces 130 Positions

Reported: May. 9, 2014 3:02 PM EDT
Updated: May. 9, 2014 11:48 PM EDT
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LEIVASY, W.Va. (Jeff Morris, Dan Matics) -- A subsidiary of Alpha Natural Resources has shut down two mines in Nicholas County and reduced the number of positions by 130 people.

Alex Energy has idled the Grassy Creek and Hominy Creek mines effective May 2, Steve Higginbottom, a spokesman for Alpha Natural Resources said. The shutdowns also will affect the Green Valley Plant and Green Valley Trucking, the spokesman said.

The spokesman said 65 employees were offered a transfer within the Green Valley operating unit and 10 were offered opportunities at other Alpha Natural Resources affiliate locations.

The idling is the result of continued adverse market conditions, which have decreased the demand and sales price for metallurgical coal. With prices for metallurgical coal so low, the two mines were at a competitive disadvantage due to their cost structure.

"I don't know what people are going to do - probably relocate," Sandra Kincaid of Nicholas County. "There's not anything to do here right now."



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