ST. LOUIS, Jan. 13, 2012 /PRNewswire/ -- Patriot Coal
Corporation (NYSE: PCX) today announced the implementation of
proactive measures at its Southern WV operations to curtail higher
cost production in response to weaker market demand for
metallurgical coal. The Company will idle one
contractor-operated mine and two subsidiary-operated production
units in the Rocklick complex. Two contractor-operated mines
in the Wells complex will also be idled.
"Metallurgical coal demand has trended steadily downward in
recent weeks, most notably in the export market," stated Patriot
President and Chief Executive Officer Richard M. Whiting. "These production
cuts, in conjunction with other cost-reduction measures being
implemented concurrently, are aimed at lowering our mining costs,
aligning production with identified sales, and preserving
high-quality reserves for a stronger market."
"During 2011 we increased metallurgical coal production to match
the needs of the market. The modular nature of our Met
Build-Out program allows flexibility to dial production up or down
in line with market circumstances," continued Whiting. "These
changes will trim output from our highest cost sources while the
met market finds its balance. As world economies return to
normal growth rates, we expect a resumption of the longer-term
growth trend for metallurgical coal demand that should allow us to
bring much of this production back on line."
The Company plans to provide guidance for 2012, including
anticipated metallurgical coal volume, in conjunction with its
fourth quarter earnings announcement.
About Patriot Coal
Patriot Coal Corporation is a leading producer and marketer of
coal in the eastern United States,
with 14 active mining complexes in Appalachia and the Illinois
Basin. The Company ships to domestic and international
electricity generators, industrial users and metallurgical coal
customers, and controls approximately 1.9 billion tons of proven
and probable coal reserves. The Company's common stock trades
on the New York Stock Exchange under the symbol PCX.
Forward-Looking Statements
Certain statements in this press release are forward-looking as
defined in the Private Securities Litigation Reform Act of
1995. These statements involve certain risks and
uncertainties that may be beyond our control and may cause our
actual future results to differ materially from expectations.
We do not undertake to update our forward-looking statements.
Factors that could affect our results include, but are not limited
to: price volatility and demand, particularly in higher margin
products; geologic, equipment and operational risks associated with
mining; changes in general economic conditions, including coal,
power and steel market conditions; coal mining laws and
regulations; the availability and costs of competing energy
resources; legislative and regulatory developments; risks
associated with environmental laws and compliance, including
selenium-related matters; developments in greenhouse gas emission
regulation and treatment; negotiation of labor contracts, labor
availability and relations; the outcome of pending or future
litigation; changes in the costs to provide healthcare to eligible
active employees and certain retirees under postretirement benefit
obligations; increases to contribution requirements to
multi-employer retiree healthcare and pension plans; reductions of
purchases or deferral of shipments by major customers; availability
and costs of credit; customer performance and credit risks;
inflationary trends; worldwide economic and political conditions;
downturns in consumer and company spending; supplier and contract
miner performance and the availability and cost of key equipment
and commodities; availability and costs of transportation; the
Company's ability to replace coal reserves; the outcome of
commercial negotiations involving sales contracts or other
transactions; our ability to respond to changing customer
preferences; failure to comply with debt covenants; the effects of
mergers, acquisitions and divestitures; and weather patterns
affecting energy demand or disrupting coal supply. The
Company undertakes no obligation (and expressly disclaims any such
obligation) to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise. For additional information concerning factors that
could cause actual results to materially differ from those
projected herein, please refer to the Company's Form 10-K and Form
10-Q reports.
SOURCE Patriot Coal Corporation