US producer Foundation Coal said that its affiliates in the Central Appalachian region will reduce production and cut about 60 jobs as a response to a drop in demand.
Foundation affiliate Kingston Resources has revised its planned production at its Kingston mine owing to reduced shipments.
In addition, Foundation's affiliated surface mining operations are cutting planned production due to reduced demand.
Foundation chairman and CEO James F Roberts blamed the ongoing economic downturn for the imbalance between the demand and supply of coal.
“These production cuts are within the range anticipated in the revised shipment guidance provided on our first quarter earnings call and do not change our expectations for full year 2009 shipments," Roberts said.
The company is due to complete a merger with Alpha Natural Resources, which Roberts said will position the company to deliver future growth and will stand ready to increase production when demand growth resumes.
By staff writer