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FYI: Patriot Coal To Close Appalachian Mines

posted on Jan 21, 2009 10:30PM

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Patriot Coal To Close Appalachian Mines

Wednesday, January 21, 2009; Posted: 11:32 PM

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Jan 22, 2009 (financialwire.net via COMTEX) -- PCXW | Quote | Chart | News | PowerRating -- January 22, 2009 (FinancialWire) -- Patriot Coal Corp. (NYSE: PCX | Quote | Chart | News | PowerRating) (Current Market Cap: US$472.04 Mil.) plans to idle its Remington complex and Black Oak mine, and reduce activity at the Rocklick preparation facility as part of an initiative meant to reconfigure certain of its Central Appalachian mining complexes.

The latest moves are a follow-on to the earlier idling of the company's Jupiter complex. In reviewing its current mining operations, reserves, and potential organic growth opportunities, the company has made cost per ton the key focal point in its decision-making.

Patriot's Remington complex produced one million tons of thermal coal in 2008 at one surface and two underground mines. Lower mining recovery at this complex resulted in a higher cost structure, as compared to others in the Patriot portfolio.

The company's Black Oak mine is a follow-on operation to replace metallurgical production from the Harris mine, which is reaching the end of its mine life. With current weak demand in the metallurgical market, the company has decided to suspend this operation until the market improves.

Patriot said it had expected to produce around 0.9 million tons at the Black Oak mine in 2009. In conjunction with the idling of the Black Oak mine, the company will also reduce manpower and operating time at its Rocklick preparation plant.

In connection with the idling of these facilities, the company said it has given notice to employees that around 400 positions are expected to be eliminated as a result of these actions.

St. Louis-based Patriot Coal is a producer and marketer of coal in the eastern United States, with sixteen mining complexes in Appalachia and the Illinois Basin.

FinancialWire" ( http://www.financialwire.net ), an independent, proprietary news service of Investrend Communications, Inc., receives no compensation for its news or opinions. Further disclosure is at http://www.investrend.com/articles/s... . To contact FinancialWire" write to inquiries@financialwire.net .

Free annual reports for companies mentioned in the news are accessible via http://investrend.ar.wilink.com/?lev... .