(Source: Business Wire)
In response to ongoing challenges in the Central Appalachian coal market, Alliance Resource Partners, L.P. (NASDAQ: ARLP) today announced that it is reducing previously planned coal production by idling one of the four continuous mining units operating at its Van Lear mine, which is part of the Pontiki mining complex in Martin County, Kentucky.
"Demand for coal delivered from Pontiki into the Norfolk Southern rail markets has declined significantly over the last 12 months and current customer indications are that this lack of demand could persist through 2010," said Joseph W. Craft III, President and Chief Executive Officer. "While we deeply regret the impact on our employees, their families and their communities, without firm sales commitments at acceptable prices, we must reduce production in this market environment."
As a result of the reduced operating level at Pontiki, coal production for the remainder of 2009 will be approximately 150,000 to 200,000 tons lower than previously anticipated. Seventy two employees are affected by this action and Alliance, along with the Commonwealth of Kentucky's Office of Employment and Training, are providing assistance to these dislocated employees.
About Alliance Resource Partners, L.P.
ARLP is a diversified producer and marketer of coal to major United States utilities and industrial users. ARLP, the nation's only publicly traded master limited partnership involved in the production and marketing of coal, is currently the fifth largest coal producer in the eastern United States with operations in all major eastern coalfields. ARLP currently operates eight underground mining complexes in Illinois, Indiana, Kentucky, Maryland and West Virginia. We are constructing two new mining complexes, one in Kentucky and one in West Virginia, and also operate a coal loading terminal on the Ohio River at Mt. Vernon, Indiana.
News, unit prices and additional information about ARLP, including filings with the Securities and Exchange Commission, are available at http://www.arlp.com. For more information, contact the investor relations department of ARLP at (918) 295-7674 or via e-mail at investorrelations@arlp.com.
The statements and projections used throughout this release are based on current expectations. These statements and projections are forward-looking, and actual results may differ materially. These projections do not include the potential impact of any mergers, acquisitions or other business combinations that may occur after the date of this release. At the end of this release, we have included more information regarding business risks that could affect our results.
