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Alliance Resources Partners LP (NASDAQ:ARLP) announced that as a result of weak coal demand, it will cease production at its Pontiki mining complex, located in Kentucky, in early December. Its subsidiary, Excel Mining LLC, has issued Worker Adjustment and Retraining Notification Act notices to all Pontiki employees.
Alliance Resources Partners LP (NASDAQ:ARLP) announced that as a result of weak coal demand, it will cease production at its Pontiki mining complex, located in Kentucky, in early December. Its subsidiary, Excel Mining LLC, has issued Worker Adjustment and Retraining Notification Act notices to all Pontiki employees.
As quoted in the press release:
ARLP continues to execute on its growth projects in the Illinois Basin and Northern Appalachia, and management is currently evaluating options to provide employment opportunities to Pontiki personnel at other ARLP operations in those regions. Information sessions will be scheduled in the near future to allow Pontiki employees to learn more about these opportunities.
Joseph W. Craft III, president and CEO of Alliance, commented:
For over 36 years, the Pontiki mining complex has operated safely and profitably — providing quality jobs for our hardworking people and meeting the needs of customers. When Pontiki resumed production last year, we knew the market outlook was uncertain but were hopeful that conditions would improve. Unfortunately, market conditions remain weak, and we have been unable to secure new coal sales commitments for Pontiki coal beyond the existing 2013 contracts. While we are deeply saddened by the impact of this decision on our employees, their families and their communities, we have no choice but to take this unfortunate but necessary step to begin the process of winding down production operations at Pontiki.
Click here to read the full Alliance Resources Partners LP (NASDAQ:ARLP) press release.