Tulsa’s Alliance Resource Partners suspends coal mines in Ilinois


Tulsa-based coal mining company Alliance Resource Partners, L.P. is shutting down its mines in Illinois because of the growing impact of the COVID-19 pandemic.

“ARLP is temporarily ceasing coal production at all of its Illinois Basin mines,” stated the company. ” While this temporary idling is currently scheduled to last through April 15, 2020, the actual return to production may be accelerated or extended based upon the business needs of our customers. As the year progresses, coal production at all of our operations will be further modified to match existing sales commitments of approximately 28 million tons for 2020.”

Alliance said the unprecedented decision by world leaders to lockdown the global economy to combat the deadly virus “has crushed demand for energy.”

“The price war initiated by Saudi Arabia and Russia has lowered oil prices even more. All Americans are having to adjust to a way of life none of us could have imagined two months ago,” continued the company.

Alliance explained it has been working at reduced levels while evaluating the needs of customers and expects disruptions to continue for the immediate near future.

Company leaders say they are immediately reducing costs, expenses, working capital and capital expenditures but they did not indicate how much of a reduction. The company’s board of directors also suspended the cash distribution to unitholders for the quarter that ended March 31, 2020 and will revisit the decision after the second quarter.

Considered to be a major coal operation in the U.S. Alliance will release financial and operating results for the quarter on May 8, 2020.

“It is important to note that approximately 75% of our domestic sales are targeted to states that depend on coal, more than any other fuel, to generate electricity,” said Joseph W. Craft III, Chairman, President and Chief Executive Officer. “As serious as the disruption caused by the virus has been to the citizens of these states, imagine the impact if our miners didn’t show up every day to ensure the reliable supply of this essential fuel necessary to keep the lights on. We remain in constant contact with our customers and stand ready to meet their needs for this essential fuel.”

He expects the company’s total sales tons for 2020 to be nearly 25% below initial expectations.


ARLP currently produces coal from seven mining complexes it operates in Illinois, Indiana, Kentucky, Maryland and West Virginia. ARLP also operates a coal loading terminal on the Ohio River at Mount Vernon, Indiana. ARLP markets its coal production to major domestic and international utilities and industrial users and is currently the second largest coal producer in the eastern United States.

Source: Business Wire