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BUSINESS
Business Tri-State: Foundation Coal idling 3 W.Va. mines
CHARLESTON -- Mine operator Foundation Coal Holdings said Friday it is idling three underground mines in southern West Virginia in the latest sign that the recession is catching up with the industry.
Work at the mines and an associated preparation plant is ceasing immediately, Linthicum Heights, Md.-based Foundation said. The Laurel Creek complex in Mingo County produces about 1 million tons of coal annually, with three mines, but its high cost structure combined with the slumping coal market and difficult mining conditions make the mines "uneconomic" to operate.
That's becoming a common refrain across U.S. coalfields these days. Powder River Basin mines in Wyoming and Montana have been scaling back production, while operations in Appalachia have been idling high-cost mines, particularly those that produce metallurgical-grade coal.
So-called met coal is used to make coke to fire steel mill blast furnaces and prices have plunged from above $250 last summer to $150 or less this year on slumping demand for steel.
Arch Coal reports 4th-quarter earnings slip
ST. LOUIS -- Coal-producing Arch Coal Inc. says its fourth-quarter earnings slid but still beat Wall Street's expectations. But the company is lowering its production outlook for this year, citing continued weakness in the U.S. coal markets.
The St. Louis-based company, one of the world's biggest coal producers, reported net income of $62.3 million, or 44 cents per share, compared with $81.4 million, or 56 cents per share, a year ago.
Revenue rose to $729.8 million from $644.4 million.
WVa labor unions add to their ranks
CHARLESTON -- Mirroring a national growth in union membership, organized labor in West Virginia has increased its ranks.
The federal Bureau of Labor Statistics reports that roughly 101,000 workers in West Virginia were union members in 2008, about 13.8 percent of the total.
That's up from about 97,000, or 13.3 percent of all workers, in 2007.
Developer will proceed with W.Va. wind farm
CHARLESTON -- US Wind Force says it is moving forward with plans to build a 23-turbine wind farm in Mineral County.
The Wexford, Pa.-based company said Friday it has filed a 30-day notice of intent with the West Virginia Public Service Commission.
The notice is necessary to obtain a siting certificate from the PSC.
US Wind Force said its Pinnacle Wind Farm at NewPage will generate 55 megawatts a year, or enough to service more than 14,000 households.
NRP acquires coal reserves in Illinois
HOUSTON -- Natural Resource Partners has acquired coal reserves and infrastructure in Illinois for $143.7 million.
The agreement involves the Shay No. 1 near Carlinville, owned by Macoupin Energy an affiliate of the Cline Group. NRP will receive royalty income on the reserves and throughput fees for coal loaded and transported.
"This acquisition evidences the dividends that we expect to receive from our relationship with the Cline Group in the Illinois Basin," said Nick Carter, president and chief operating officer. "The Shay No. 1 mine has excellent geologic characteristics and we believe that the market will welcome this coal."
Natural Resource Partners has its operations headquarters in Huntington.
