The company, Patriot Coal Corporation, plans to close its Samples mine, located at the junction of Kanawha, Boone, and Raleigh counties. It will shift operations to other, “lower-cost mining complexes,” according to an Aug. 9 press release.
Work stopped immediately, and the miners have about 60 days severance pay. Patriot Coal says it acted in compliance with the Worker Adjustment and Retraining Notification (WARN) requirements. The layoffs are part of comprehensive management plan to optimize operations.
In its second quarter earnings conference call, Patriot reported that a poor economy, low natural gas prices and high inventory have weakened the domestic coal market. The company’s media relations spokesperson said the global coal market is relatively strong due to large exports into China.
Patriot and other coal companies face increasing difficulty in obtaining permits to mine new locations, due to the Environmental Protection Agency’s (EPA) strenuous review process under the Clean Water Act.
The 2009 American Clean Energy and Security Act, awaiting approval by the Senate, intends to help the United States transition to cleaner energy. It includes a cap and a trade plan, would tax CO2 emissions, offer energy-efficiency incentives for homes and buildings, and grants for green jobs among other provisions. According to the Patriot spokesperson, consumers will pay the tax, effectively raising the price of coal energy.
In an interview with Charleston-based, local television station WSAZ 3, president of the Kanawha County Commission Kent Carper said the Patriot Coal layoffs are part of the “coal boom and bust.” He said several years ago, companies were searching for miners to train. Carper said the impact of the closure on the community is huge, and the spin-off effect will cause more job losses. He spoke with families, who, he said are “scared” and not sure what to do. Carper said area Workforce Investment Boards are looking for solutions.
The owner of a boarding house in Carbon, West Virginia, about five miles from the Samples mine, said she rented seven of her eight rooms to miners. By Tuesday all the miners had left. She said she would have to survive on a lot less, and will rely on her Social Security check.