Tuesday, August 6, 2019

War on Coal Casualties


The Coal Company Bankruptcies List started in 2014. Since then 6 other coal companies have filed for Chapter 11 and 3 have recovered. Power companies moved from coal to natural gas and were planning to replace coal until 2017.  After 2013, global coal demand weakened.  Chapter 11 Bankruptcies were filed as follows:

Energy Future Holdings 2014-closed
Alpha Natural Resources 2015-2016 recovered
Peabody Coal 2016-2017 recovered
Arch Coal 2016-2016 recovered
Westmoreland Coal 2018
Cloud Peak Energy 2019
Blackjewel Coal 2019

On 8/1/19, Blackjewel filed for Chapter 11 Bankruptcy and announced an auction to sell assets.  On 8/5/19, there was a “Sale Hearing”.

Blackjewel owns 24 mining sites and has 1700 employees in Kentucky, Virginia, West Virginia and Wyoming. Most of Blackjewel’s 1100 Appalachian employees are owed nearly $11.8 million in payroll and taxes, as well as $1.2 million in employee retirement contributions. They are blocking the railroad tracks to prevent coal from being shipped from the Cumberland Kentucky plant until their back-pay issues are resolved.

Blackjewel has been unable to secure funding to pay its current bills. The War on Coal and the conversion of power plants to natural gas has affected coal demand. Coal companies are consolidating.

Bankruptcy laws need to be revised and power companies need to renew their use of coal and stop building expensive solar and wind.

Norb Leahy, Dunwoody GA Tea Party Leader

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