BRISTOL, Tenn., June 22, 2020 /PRNewswire/ -- Contura
Energy, Inc. (NYSE: CTRA), a leading U.S. coal supplier, today
announced strategic actions regarding two of its large properties
that will allow the company to further strengthen its financial
performance and to rationalize its production in light of market
conditions.
Today approximately 170 employees of Spartan Mining Company, LLC
were notified of the company's intention to idle the Ruby Energy
(also known as Kielty) underground mine and the Delbarton
Preparation Plant, which is operated by Spartan Mining but owned by
Delbarton Mining Company, LLC, each in Mingo County, West Virginia, due to sustained
adverse market conditions, which have rendered the mine uneconomic.
Additionally, approximately 7 employees of Maxxim Shared Services,
LLC working at the facilities were notified of the company's
intention to idle the facilities. The Kielty mine produces coal for
thermal, industrial, and metallurgical coal markets, and the
Delbarton Preparation Plant serves the Kielty mine. In accordance
with requirements of the Worker Adjustment and Retraining
Notification (WARN) Act, employees were given 60 days' notice of
expected layoffs in connection with the idling of these two
facilities.
Additionally, Contura has decided against constructing a new
refuse impoundment at its Cumberland Mine in Greene County, Pennsylvania, and will not
spend the significant capital of over $60
million that was previously announced in connection with
this project. Instead, Contura has entered into amendments of
certain of its coal supply agreements such that all of its
obligations to supply coal to customers from the Cumberland Mine
will expire as of December 31, 2022.
In the meantime, Contura plans to actively market the Cumberland property for sale while it
continues to supply coal in accordance with the amended
agreements.
Speaking about today's announcements, Contura's chairman and
chief executive officer David
Stetson reiterated the especially adverse market conditions
that formed the foundation of these business decisions. "Given the
current market conditions and what we expect from the near-term
outlook, it is clear that these properties are not economical and
will not be able to deliver the kind of value we strive for in our
portfolio," Stetson said. "These are trying times, but we are
committed to make the difficult choices necessary to maintain our
long-term financial strength."
ABOUT CONTURA ENERGY
Contura Energy (NYSE: CTRA) is a Tennessee-based coal supplier with affiliate
mining operations across major coal basins in Pennsylvania, Virginia and West
Virginia. With customers across the globe, high-quality
reserves and significant port capacity, Contura Energy reliably
supplies both metallurgical coal to produce steel and thermal coal
to generate power. For more information, visit
www.conturaenergy.com.
FORWARD-LOOKING STATEMENTS
This news release includes forward-looking
statements. These forward-looking statements are based on
Contura's expectations and beliefs concerning future events and
involve risks and uncertainties that may cause actual results to
differ materially from current expectations. These factors are
difficult to predict accurately and may be beyond Contura's
control. Forward-looking statements in this news release or
elsewhere speak only as of the date made. New uncertainties
and risks arise from time to time, and it is impossible for Contura
to predict these events or how they may affect Contura. Except
as required by law, Contura has no duty to, and does not intend to,
update or revise the forward-looking statements in this news
release or elsewhere after the date this release is issued. In
light of these risks and uncertainties, investors should keep in
mind that results, events or developments discussed in any
forward-looking statement made in this news release may not
occur.
INVESTOR
CONTACT
investorrelations@conturaenergy.com
Alex Rotonen, CFA
423.956.6882
MEDIA
CONTACT
corporatecommunications@conturaenergy.com
Emily O'Quinn
423.573.0369
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SOURCE Contura Energy, Inc.