Aug. 4--Patriot Coal Corp. is closing another mine in Central Appalachia and eliminating 314 jobs as coal demand and prices erode.

The Creve Coeur-based company, which was spun off from Peabody Energy Corp. in 2007, said employees at the Samples mine were notified that they will lose their jobs as of Oct. 5.

The mine produced 2.4 million tons of coal in 2008, according to the federal Mine Safety & Health Administration. It was among those added in last July's $695 million acquisition of Magnum Coal Co.

Since then, coal markets have deteriorated in sympathy with the economy.

Patriot Coal has shuttered or idled four mines since January in a two-county area of southern West Virginia, eliminating about 700 jobs in all.

"Our strategy is to concentrate production at lower-cost mining complexes," Patriot CEO Richard M. Whiting said Monday in a statement.

"By ceasing operations at this higher-cost surface mine, Patriot will keep valuable permitted reserves in the ground until the market yields more favorable pricing and margins."

Across the nation, rival coal producers have either shut or idled mines and slashed spending as the recession, a steep decline in natural gas prices and cool summer weather have contributed to a drop in electricity demand.

Demand for coal used in power plants is expected to slip below 1 billion short tons for the first time since 2002, according to the Energy Information Administration. Meanwhile, power plant stockpiles are growing larger.

Energy Research firm Wood Mackenzie predicted in a July 22 report that the recession and other factors curbing demand would require an additional reduction of 50 million short tons in U.S. coal output, with Central Appalachia bearing the brunt of the cuts.

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