Massey to boost production at other mines to make up for downtime at W.Va. mine
Massey Energy said it will boost production at its other mines to make up for the downtime at the Upper Big Branch-South mine in West Virginia where 25 miners were killed in an explosion Monday and four are still missing.
In a regulatory filing today, Massey said before the accident that it expected the Upper Big Branch mine to produce 1.6 million tons of coal this year, up slightly from its 2009 production of 1.2 million tons. It values the coal at $91 per ton.
Massey will transfer most of the mine's idled employees to other mines but that will not make up for the production shortfall.
"Even with the mitigation efforts, we do not believe we can replace 100 percent of the planned [Upper Big Branch] production for 2010," the company said in its SEC filing.
The company also fought back against its critics in the filing.
"Media reports suggesting that the [Upper Big Branch] tragedy was the result of a willful disregard for safety regulations are completely unfounded," the company wrote. "Our lost-time incident rate has been better than the industry average for 17 of the past 19 years, improving significantly in recent years."
Massey wrote in the filing that it expects to reopen the mine and recover the expensive equipment trapped underground but could not say when.
Follow me on Twitter at @theticker.
Posted by: liveride | April 9, 2010 5:03 PM | Report abuse
Posted by: tossnokia | April 9, 2010 9:10 PM | Report abuse
The comments to this entry are closed.