One of the largest coal mining companies operating in Central Appalachia reported first quarter losses on Appalachian coal operations. Arch Coal lost about 41 cents per ton of coal it mined, and Appalachia was the only region among the four where the company mines in which it had a los. Arch reported first quarter earnings of $1.2 million in the region, compared to $55.6 million last year.
Arch CEO John Eaves told WVNS-TV the "severe weakness in U.S. thermal coal markets" had a big impact on first quarter earnings, and has caused the company to reset its 2012 earning expectations. He also said the company is "furthering curtailing" of its production. Arch has recently closed five operations in Appalachia, eliminating about 500 jobs.
Another factor is the rise of natural gas production, the cost of which continues to drop. It also may reflect what many within the industry have come to accept: the increasing difficulty of mining Appalachian coal reserves. (Read more)
Arch CEO John Eaves told WVNS-TV the "severe weakness in U.S. thermal coal markets" had a big impact on first quarter earnings, and has caused the company to reset its 2012 earning expectations. He also said the company is "furthering curtailing" of its production. Arch has recently closed five operations in Appalachia, eliminating about 500 jobs.
Another factor is the rise of natural gas production, the cost of which continues to drop. It also may reflect what many within the industry have come to accept: the increasing difficulty of mining Appalachian coal reserves. (Read more)
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