Coal producer Alliance Resource Partners LP said it was idling a mining unit at its Van Lear mine in Kentucky due to lower demand, affecting 72 employees.
Coal production for the remainder of 2009 will be about 150,000 to 200,000 tons lower than previously anticipated, the company said.
"Demand for coal delivered from Pontiki into the Norfolk Southern rail markets has declined significantly over the last 12 months and current customer indications are that this lack of demand could persist through 2010," Chief Executive Joseph Craft said in a statement.
In April, Alliance forecast 2009 coal production of 27.1 million to 27.5 million tons.
The idled unit is one of the four continuous mining units at the Van Lear mine, a part of the Pontiki mining complex in the Central Appalachian region.
The downturn has resulted in near-term pain for the coal industry, as demand for electricity and steel slumped around the world, forcing coal producers to lower production outlook and idle operations.
In May, Foundation Coal Holdings Inc cut 60 jobs in the Central Appalachian region.
SourcE: Reuters
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