Ashland

By wmadministrator

Appalachian Fuels, an Ashland-based energy company, has idled all of its mining operations in Kentucky and West Virginia, according to a report in The (Ashland) Daily Independent. In a statement issued by the company, Appalachian Fuels President Stephen Addington said, “As we see the auto industry produce and sell fewer cars, the ripple effect on us is that they use less steel, which reduces the demand for coal. Demand is further impacted as more factories are idled and utilities are selling less electricity, which means another drop in demand for our product. In addition to these near-term market dynamics affecting our company and industry, there are many long-term challenges being pushed down from the EPA that impact our ability to build for the future.
Unfortunately, when the supply and demand lines cross at a point where we cannot produce coal at a price to cover expenses, we have no choice other than to idle the operations until demand returns.” The action affects approximately 400 employees.

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