Arch Coal idles three U.S. mines, cuts 750 jobs
6/21/12 5:43 PM ET (MarketWatch)
SAN FRANCISCO (MarketWatch) -- Arch Coal, Inc. said late Thursday it will idle several mining operations in Appalachia, decreasing overall coal production by 3 million tons annually, in response to drops in demand for coal-generated electricty. Arch Coal estimates the cutback will save them $30 to $40 million in annual capital expenditures and cost 750 full-time employees their jobs, 10% of the company's workforce. They estimate the layoff costs at $14 million. Arch Coal shares closed Thursday at $4.20. The stock is down 57% since the start of the year, reflecting in part stiff competition from natural gas in power generation and a slowdown in comercial and industrial electricity demand.