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Patriot Coal to Close Samples Mine; 314 Jobs Eliminated
Monday, August 03, 2009 1:57 PM


(Source: The Charleston Gazette)trackingBy Jon Offredo and Ken Ward Jr., The Charleston Gazette, W.Va.

Aug. 3--CHARLESTON, W.Va. -- Patriot Coal Corp. confirmed this morning that it plans to close its Samples Mine, a move that would cost 314 jobs and shut down one of the largest mountaintop removal operations in West Virginia.

Patriot Chief Executive Officer Richard M. Whiting cited high costs and the soft coal market, noting that the operation's reserves would remain in the ground and could be mined if economic conditions improve.

"As we continue to balance our production levels with the soft thermal coal demand, our strategy is to concentrate production at lower-cost mining complexes," Whiting said in a statement issued early this morning. "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.

"We appreciate the contributions of the employees at the Samples mine over the years and regret that these challenging markets have required us to take this action."

A worker who did not want to give his name said Saturday that employees of the mine were notified that they are out of their jobs. The worker explained the letter said they will be given 60 days' pay to satisfy the required 60-day notice workers must receive when a company shuts down operations.

The worker said mine officials praised them just last week for their safety and production record.

A WARN notice is sent out in the event of a closure or a mass layoff not resulting from a plant closing, but one that would eliminate 500 or more workers or 33 percent of an active work force excluding recent hires, according to the U.S. Department of Labor Employment and Training Administration. Federal law also requires the notices to be sent to state and county governments.

The latest data from the U.S. Mine Safety and Health Administration said the Samples Mine employs 225 miners and 36 office workers. In its WARN notice to local officials, Patriot said the operation has 239 hourly and salaried employees. The mine closure will also affect 75 employees at the Tom's Fork Loadout and Preparation Plant, warehouse and office.

All employees will be out of a job as of Oct. 5, the notice said.

Catenary Coal Co., a subsidiary of Patriot Coal Corp., operates the Samples mine. Patriot has 16 mining complexes in Central Appalachia and southern Illinois. Patriot bought the mine from Magnum Coal. Arch Coal originally developed the mine.




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