The deterioration of the international coal market forced Tulsa-based Alliance Resources Partners, L.P. to lay off 185 workers at one of its Indiana coal mines.
Alliance announced the action was at the Gibson County Coal mine operation in Owensville and Princeton, Indiana. The company issued a Workers Adjustment and Retraining Notification (WARN) Act notice due to the idling of production at the Gibson North mine. The workers will be laid off in January.
“A substantial portion of production from the Gibson Complex has been dedicated to supplying the international coal markets,” said Joseph W. Craft III, Chairman, President and Chief Executive Officer. “The export markets have deteriorated over the last seven months and have contributed to an over-supplied domestic market. Although we anticipate coal markets will improve, predicting when a rebound may occur is difficult and led to our actions today.”
Craft said until conditions improve, the notification allows the company to adjust volumes to meet demand.
” While market conditions made this decision necessary, we deeply regret the impact of this action on our employees, their families and their communities.”
The Gibson North mine produced this year approximately 1.7 million tons of coal through October 31, 2019. ARLP does not expect the idling of Gibson North to have any impact on its previously announced earnings guidance provided in its October 28, 2019 Press Release, including 2019 full-year ranges for coal production of 40.1 to 40.4 million tons and coal sales volumes of 39.1 to 39.5 million tons.