Alpha Natural resumes operations at Pennsylvania mine

16th August 2013 By: Henry Lazenby - Creamer Media Deputy Editor: North America

TORONTO (miningweekly.com) – Coal miner Alpha Natural Resources has restarted production and lifted a force majeure at its Cumberland thermal coal mine, in Pennsylvania, after production was shut down in July, owing to adverse geological conditions in the mine's headgate area.

The company late on Thursday said operations were gradually ramping up after the company had fixed a part of the mine’s roof.

"Safety will always take top priority for Alpha and it was absolutely critical that we mitigate the adverse conditions before resuming mining operations,” Alpha president Paul Vining said.

In its second-quarter results, released early in August, the company said the force majeure – a clause included in contracts that removes liability for natural and unavoidable events that would prevent companies from fulfilling contractual obligations – would result in less output and could result in higher costs.

The company's net loss for the second quarter, ended June 30, narrowed to $185.7-million, or $0.84 a share, from $2.23-billion, $10.14 a share, a year earlier, when the company booked about $2.5-billion in impairment and restructuring charges.

Revenue fell to $1.34-billion from $1.85-billion, as falling coal prices impacted on the company's performance.