(By Balachander) Alpha Natural Resources Inc. (NYSE:ANR) plans to eliminate about 9 percent of its workforce as part of its move to reshape its portfolio of operations and focus on metallurgical coal business.
Abingdon, Virginia-based Alpha said it will reduce annualized coal production and shipments by roughly 16 million tons, 40 percent of which will come from higher-cost thermal coal operations in the East. Roughly half of the cuts will come from production curtailments in the Powder River Basin.
The supplier of metallurgical coal will eliminate around 1,200 jobs from its workforce of 13,100 employees between now and early 2013. It targets overhead cost savings of around $150 million.
Early June, Alpha said it will cut back coal output from Kentucky mines, citing continued market pressures and new regulatory actions on coal-fired power plants. It had termed production from certain mines in northern and southern Kentucky business units "uneconomic" and the coal producer announced 150 job cuts in the affected sites.
In addition, the company, with annual revenue of $7.1 billion, plans to consolidate its four existing operating regions into two.
ANR shares, which have been trading in the 52-week range of $5.28 to $30.66, ended at $8.08 on Monday.