In a significant announcement, Alliance Resource Partners, L.P. (NASDAQ: ARLP) revealed that its subsidiary, Mettiki Coal (WV), LLC, has issued Worker Adjustment and Retraining Notification (WARN) notices. This decision impacts all employees at the Mountain View Mine near Tucker County, West Virginia, marking a pivotal moment in the mine’s nearly 50-year history within the ARLP framework.
The Chairman, President, and CEO, Joseph W. Craft, III, stated that the decision was not made lightly.
The ramifications will resonate through families and the broader community historically supportive of the mine. Craft emphasized the emotional weight of this announcement, underscoring its significant impact on many lives.
Table of Contents:
Reasons for the WARN Act notice
The WARN notice is a response to a series of complications disrupting operational stability. Craft explained that both anticipated and unanticipated outages at a major customer’s facility have negatively affected demand for coal from Mettiki. This unforeseen situation has influenced shipment volumes and created a bleak outlook for.
Recent communications from the customer indicate further shutdowns are anticipated in, prompting a reassessment of Mettiki’s operational viability. The mine’s unique location and the specific low-volatile coal quality it produces mean Mettiki relies on this customer for a minimum purchase of one million tons annually to sustain operations. With no immediate alternative buyers available, issuing the WARN notice became necessary.
Future operations and employee impact
Mettiki currently employs around two hundred individuals. In, the mine’s production reached approximately 1.2 million tons, with a significant portion allocated for the export metallurgical market and the remainder directed to the key customer. As of January 29, Mettiki expects to fulfill existing contracts primarily through its current inventory, which is set
Once production ceases, Mettiki will evaluate its future options, including the potential for permanent closure. Employees not involved in reduced coal output will focus on reclamation activities essential for environmental stewardship.
Financial implications for Alliance Resource Partners
The anticipated decrease in sales volumes from Mettiki will impact the financial outlook for Alliance Resource Partners. The Partnership plans to disclose updated projections for on February 2. Notably, for the fiscal year ending December 31, the Segment Adjusted EBITDA, after accounting for capital expenditures, was approximately $3.5 million.
In light of this decision, the Partnership will assess potential impairments linked to the mine’s operations in the first quarter of. These evaluations are crucial, informing investors and stakeholders about the future trajectory of both Mettiki and Alliance Resource Partners.
About Alliance Resource Partners
Alliance Resource Partners, L.P. operates as a diversified energy company and ranks as the second-largest coal producer in the eastern United States. The company is committed to providing reliable, cost-effective energy solutions to various sectors, including major utilities and industrial users. In addition to coal production, ARLP generates income through mineral interests in strategic coal and oil & gas producing regions across the United States.
In pursuing a sustainable future, ARLP actively seeks opportunities that support the evolution of energy and related infrastructures. This strategic focus positions the Partnership as a vital player in a rapidly changing energy landscape.
The Chairman, President, and CEO, Joseph W. Craft, III, stated that the decision was not made lightly. The ramifications will resonate through families and the broader community historically supportive of the mine. Craft emphasized the emotional weight of this announcement, underscoring its significant impact on many lives.0
