ST. LOUIS, April 20, 2012 /PRNewswire/ -- Patriot Coal
Corporation (NYSE: PCX) today announced actions to further reduce
thermal coal production in response to continued weakness in market
demand. The Company disclosed the planned idling of the
Freedom underground mine and, pursuant to the WARN Act, gave 60-day
notice today to affected employees. The Freedom mine is
located in the Bluegrass complex near Henderson, Kentucky and produced 1.2 million
tons of thermal coal in 2011. Following this action, Patriot
will have no remaining uncommitted Illinois Basin thermal coal for 2012
delivery.
"Thermal coal markets remain weak as a result of the mild
winter, coupled with low natural gas prices and reduced demand for
electricity related to the economic downturn. We are taking
this step to align production with committed sales," stated Patriot
Executive Vice President & Chief Operating Officer Bennett K. Hatfield. "Additionally, during
the first quarter, we idled three smaller Central Appalachian
thermal coal mines that together produced about 1.2 million tons in
2011. In total, including today's announcement and the
previously announced closure of the Big Mountain complex, we have
reduced Patriot's annual thermal production by more than 4 million
tons compared with 2011."
The Company plans to provide updated guidance for 2012,
including anticipated thermal coal volume, in conjunction with its
first quarter earnings announcement.
About Patriot Coal
Patriot Coal Corporation is a leading producer and marketer of
coal in the eastern United States,
with 13 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