Operations at four mines and idle two coal preparation plants in Pike and Martin counties will be discontinued by Alpha’s affiliates in Kentucky.
This will be in addition to reducing production at several other mines, and closure of four contract mines.
Alpha Natural Resources chairman and CEO Kevin Crutchfield said that they want to ensure an appropriate business model is in place for the emerging challenges of the coal industry in US.
"That means ensuring our thermal coal assets are sustainable through the business cycle, particularly in the onerous regulatory environment we’re confronting," Crutchfield added.
Alpha’s coal shipments will reduce by 2 million tons in 2012 and 4 million tons in 2013.
The decline in demand for thermal coal is primarily due to utilities switching over to alternate options, coupled with severe regulatory sanctions by the US environment protection agency.
Alpha is expected to save $50m to $60m annually from downsizing in operations which will also result in net 150 jobs lost. An additional 286 employees will need to be relocated due to reduced operations in Kentucky.
