Coal firm warns hundreds of layoffs

Patriot Coal Co. warned miners at two mines in western Kentucky that it might lay off workers in the next two months.

The mines, near Henderson and Sturgis, together employ 670 people. Patriot warned of the potential for “substantial workforce reductions” at the mines as it evaluates strategic options, television station WFIE reported Friday.

{mosads}Patriot blamed competition from cheap natural gas, along with the Environmental Protection Agency, which it said is developing “regulations designed to curtail low-cost coal-fueled energy.”

Bill Bissett, president of the Kentucky Coal Association, told WFIE those factors have led to thousands of job losses in recent years in the area.

“Its very difficult when it comes near the holidays especially,” Bissett said. “But I think you really have to look at this as an isolated incident in Western Kentucky thus far, and it would be way too early to say if this is any kind of major trend.”

Meanwhile, in nearby West Virginia, 750 coal miners’ jobs are safe from the layoffs projected this summer.

Alpha Natural Resources allowed the layoff warnings for eight mines to expire, passing the 60-day deadline, the Associated Press reported Monday.

The company warned that the market for coal is still volatile.

“The market is moving toward a spot market, away from longer-term agreements that coal suppliers and customers have worked with in the past,” Alpha President Paul Vining said in a statement.

“We’re certainly mindful of the low stockpiles some utilities have on hand and are trying to ensure we are ready to respond should demand increase.”