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Alliance Resource Suspends Illinois Basin Coal Mines over COVID-19 Pandemic

Coal News - Published on Tue, 31 Mar 2020

Image Source: Alliance Resource Coal Mining Coronavirus Lockdown
Alliance Resource Partners LP announced a series of actions in response to the rapidly evolving impact of the COVID-19 pandemic. The unprecedented decision by world leaders to lockdown the global economy to combat the deadly virus has crushed demand for energy. The price war initiated by Saudi Arabia and Russia has lowered oil prices even more. All Americans are having to adjust to a way of life none of us could have imagined two months ago. Given the essential, life-sustaining nature of its business, ARLP continued to operate during the 2020 first quarter. For the past six weeks, however, we have been working at reduced levels while evaluating the needs of our customers amid the disruptions caused by the pandemic. It appears these disruptions will continue for the immediate near future and in light of the ongoing uncertainty surrounding the COVID-19 pandemic, ARLP is taking the following actions:

ARLP is temporarily ceasing coal production at all of its Illinois Basin mines. While this temporary idling is currently scheduled to last through April 15, 2020, the actual return to production may be accelerated or extended based upon the business needs of our customers. As the year progresses, coal production at all of our operations will be further modified to match existing sales commitments of approximately 28 million tons for 2020.

To mitigate the reduced revenues from lower coal sales volumes and the impact of depressed commodity prices on our Minerals segment, ARLP will optimize cash flows through numerous initiatives to reduce costs, expenses, working capital and capital expenditures.

ARLP is a diversified natural resource company that generates income from coal production and oil & gas mineral interests located in strategic producing regions across the United States. ARLP currently produces coal from seven mining complexes it operates in Illinois, Indiana, Kentucky, Maryland and West Virginia. ARLP also operates a coal loading terminal on the Ohio River at Mount Vernon, Indiana. ARLP markets its coal production to major domestic and international utilities and industrial users and is currently the second largest coal producer in the eastern United States.

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Posted By : Yogender Pancholi on Tue, 31 Mar 2020
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