Company type | Defunct |
---|---|
Industry | Mining |
Founded | October 31, 2007 [1] |
Headquarters | St. Louis, Missouri, USA |
Key people | Bennett K. HatfieldPres, CEO, Dir. |
Products | Coal |
Number of employees | 3,500 (2010) |
Subsidiaries | Magnum Coal |
Website | patriotcoal.com |
Patriot Coal Corporation was a coal-mining company based in St. Louis, Missouri in the United States. The company was a spin-off of most of the Eastern U.S. operations of Peabody Energy.
Patriot was the second largest coal miner east of the Mississippi River. The company's operations were made up of 16 mining complexes. Thirteen of these complexes were located in West Virginia and three were located in Kentucky. In 2007, Patriot sold 22.1 million tons of coal. The company controlled 1.9 billion tons of proven and probable coal reserves. Patriot was the largest producer of thermal coal in the Eastern United States. It was also a leading producer of metallurgical coal. Approximately 80% of its coal was sold to domestic utilities and 20% was sold to domestic and international steel producers.
Patriot Coal's stock started trading on the New York Stock Exchange under the symbol PCX on November 1, 2007.
On July 23, 2008, Patriot acquired Magnum Coal Company. At the time, Magnum was one of the largest coal producers in Appalachia, with 11 mines and 7 processing plants. Magnum had over 600 million tons of proven or probable coal reserves. [2]
On June 1 and 14, 2012, solely for the purpose of establishing venue in the Southern District of New York, Patriot incorporated two subsidiaries in New York, according to counsel for the United Mine Workers. [3] [4] On July 9, 2012, Patriot Coal Corporation and all of but two of its wholly owned subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York. None of its joint ventures are party to the bankruptcy proceeding, however. [5] Patriot management advised its shareholders that it intends to use the reorganization process to address its financial challenges and make the company stronger and more competitive. The stock listed on the NYSE (New York Stock Exchange) under the symbol PCX dropped 72.1% to a record low on July 9, 2012. [6]
Also on July 9, 2012, the company issued a letter to all retired workers that their medical programs are still in place and payments will be made as usual. [7] The company has, however, made it clear that it intends to seek to reduce or eliminate its benefit obligations through the bankruptcy process, which it estimates to have a total present value of $1.3 Billion. [8] The United Mine Workers of America, which represents Patriot's classified workers and retirees, has indicated that it will fight to preserve those promised benefits. [9]
On July 10, 2012, the company received interim bankruptcy court approval of a debtor-in-possession loan facility, giving Patriot access to $677 million in financing. [10]
Having restructured, the company exited Chapter 11 on December 18, 2013, as a privately owned company. [11]
In Patriot Coal's Brody Mine No. 1 in West Virginia two of its workers died in a ground failure. The owners were in the process of disputing numerous safety violations at the mine which the federal Mine Safety and Health Administration had categorized as a pattern violator. [12]
in February 2014, over 100,000 gallons of coal slurry spilled from a Patriot Coal facility into Fields Creek, a tributary of the Kanawha River. [13]
On May 12, 2015, Patriot Coal Corporation and its wholly owned subsidiaries filed voluntary petitions for restructuring under Chapter 11. [14]
In October 2015, Lexington, KY-based Blackhawk Mining, LLC, purchased most of the assets of Patriot Coal out of bankruptcy. The value of the transaction was approximately $1 billion.
The company has announced it will no longer provide health coverage to its retirees after 31 December 2016. [15]
On November 15, 2012, the company signed an agreement with the Sierra Club to end the practice of mountaintop removal, a destructive forms of mining. [16]
Coal mining is the process of extracting coal from the ground or from a mine. Coal is valued for its energy content and since the 1880s has been widely used to generate electricity. Steel and cement industries use coal as a fuel for extraction of iron from iron ore and for cement production. In the United Kingdom and South Africa, a coal mine and its structures are a colliery, a coal mine is called a "pit", and above-ground mining structures are referred to as a "pit head". In Australia, "colliery" generally refers to an underground coal mine.
Mountaintop removal mining (MTR), also known as mountaintop mining (MTM), is a form of surface mining at the summit or summit ridge of a mountain. Coal seams are extracted from a mountain by removing the land, or overburden, above the seams. This process is considered to be safer compared to underground mining because the coal seams are accessed from above instead of underground. In the United States, this method of coal mining is conducted in the Appalachian Mountains in the eastern United States. Explosives are used to remove up to 400 vertical feet of mountain to expose underlying coal seams. Excess rock and soil is dumped into nearby valleys, in what are called "holler fills" or "valley fills".
GenOn Energy Holdings, formerly Mirant Corporation, was a subsidiary of GenOn Energy, and is now a part of NRG Energy.
Massey Energy Company was a coal extractor in the United States with substantial operations in West Virginia, Kentucky and Virginia. By revenue, it was the fourth largest producer of coal in the United States and the largest coal producer in Central Appalachia. By coal production weight, it was the sixth largest producer of coal in the United States.
The Horsehead Holding Corporation, formerly The New Jersey Zinc Company, was an American producer of zinc and related materials based in Pittsburgh. The operations of the historic company are currently conducted as American Zinc Recycling.
International Coal Group, Inc. (ICG), is a company headquartered in Teays Valley, West Virginia that was incorporated in May 2004 by WL Ross & Co for the sole purpose of acquiring certain assets of Horizon. ICG eventually operated 12 mining complexes in Northern and Central Appalachia and one complex in the Illinois Basin. In November 2005, ICG had a stock offering on the New York Stock Exchange. In 2011 ICG became a subsidiary of Arch Coal, Inc in 2011.
Peabody Energy is a coal mining company headquartered in St. Louis, Missouri. Its primary business consists of the mining, sale, and distribution of coal, which is purchased for use in electricity generation and steelmaking. Peabody also markets, brokers, and trades coal through offices in China, Australia, and the United States.
Robert Edward Murray was an American mining engineer and businessman. He founded and was the chief executive officer of Murray Energy, a mining corporation based in St. Clairsville, Ohio, until it filed for bankruptcy. Murray was criticized for his denial of climate change, his actions following the Crandall Canyon Mine collapse, and for several large strategic lawsuits against public participation (SLAPPs) he initiated. Multiple allegations of sexual misconduct were brought against him in 2014 and 2016, which were later settled out of court.
Arch Resources, previously known as Arch Coal, is an American coal mining and processing company. The company mines, processes, and markets bituminous and sub-bituminous coal with low sulfur content in the United States. Arch Resources is the second-largest supplier of coal in the United States, behind Peabody Energy. As of 2011 the company supplied 15% of the domestic market. Demand comes mainly from generators of electricity.
Coal mining is an industry in transition in the United States. Production in 2019 was down 40% from the peak production of 1,171.8 million short tons in 2008. Employment of 43,000 coal miners is down from a peak of 883,000 in 1923. Generation of electricity is the largest user of coal, being used to produce 50% of electric power in 2005 and 27% in 2018. The U.S. is a net exporter of coal. U.S. coal exports, for which Europe is the largest customer, peaked in 2012. In 2015, the U.S. exported 7.0 percent of mined coal.
Golden Minerals, was founded by Thomas Kaplan, from Denver, Colorado. It is a US-American transnational mining corporation with a tax haven address in the Cayman Islands. Following its reorganization under Chapter 11 bankruptcy in 2009, it re-emerged as Golden Minerals Corporation. It is a publicly traded company on AMEX under symbol AUMN.
Luminant is a Texas-based electric utility. It is a wholly owned subsidiary of Energy Future Holdings Corporation. Luminant's operations include electricity generation and wholesaling, mining, construction, and development. The company has capacity for the generation of 18,300 megawatts (MW) of electricity in 20 power plants spread across Texas, of which 2,300 MW come from nuclear power generated at the company's Comanche Peak Nuclear Power Plant, 5,800 MW from coal-fired power plants, and the remainder from natural gas-fired plants. Luminant is also a major purchaser of wind power.
Joy Global Inc. was a company that manufactured and serviced heavy equipment used in the extraction and haulage of coal and minerals in both underground and surface mining. The company had manufacturing facilities in Alabama, Pennsylvania, Texas, Wisconsin, Australia, Canada, China, France, South Africa, Poland and the United Kingdom. In 2017, Joy Global was acquired by Komatsu Limited and was renamed Komatsu Mining Corp.
Climate Ground Zero (CGZ), founded in February 2009, is a non-violent civil disobedience campaign against mountaintop removal mining based in the southern coalfields of West Virginia. According to their website, Climate Ground Zero believes “that the irrevocable destruction of the mountains of Appalachia and its accompanying toll on the air, water, and lives of Appalachians necessitates continued and direct action". The organization seeks to end mountaintop removal mining by drawing attention to the issue through protests involving trespass on the property of mining companies. By locking down to machinery on mine sites, occupying trees in the blast zone, or blockading haul roads to mine sites, protesters associated with Climate Ground Zero directly interfere with mining practices. Other protests draw attention to the alleged negligence of regulatory agencies such as the West Virginia Department of Environmental Protection (WVDEP) or the federal Environmental Protection Agency (EPA) by occupying the offices of these governmental organizations. Climate Ground Zero has been referenced in the New York Times, Los Angeles Times, Washington Post, Democracy Now, and the Associated Press.
Molycorp Inc. was an American mining corporation headquartered in Greenwood Village, Colorado. The corporation, which was formerly traded on the New York Stock Exchange, owned the Mountain Pass rare earth mine in California. It filed for bankruptcy in June 2015 after changing competitive circumstances, declining prices on output and a 2014 restructuring. It was purchased by its largest creditor Oaktree Capital Management and was reorganized as Neo Performance Materials.
Alpha Metallurgical Resources is a large American producer of metallurgical coal for the industrial production of steel and iron and low-sulfur thermal coal to fuel steam boilers for the production of electrical power. In November, 2018 the company was acquired by Contura Energy. The company also provides industry services relating to equipment repairs, road construction and logistics, with domestic operations and coal reserves within the states of Virginia, West Virginia, Kentucky, Wyoming, Utah, Illinois, Tennessee, and Pennsylvania. Alpha Natural Resources does not produce all of the coal it sells; much of the coal sold by Alpha Natural Resources is purchased from independent mining operations and then resold in the worldwide market.
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The Hobet 21 Coal Mine in West Virginia was operational between 1974 and 2015. Straddling the border of Boone County and Lincoln County in the Appalachian Mountains, the Hobet 21 mine was one of the largest mountaintop-removal coal mining operations in West Virginia. Originally owned by Fil Nutter, the mine used both underground mining and strip mining techniques, and later even more intensive surface mining using a dragline. Increasing productivity and profitability encouraged workers to successfully strike for their health plan in 1993, which resulted in unusually thorough coverage for mine workers at this time. The Hobet mine was incorporated into Arch Coal in 1997, along with several other mines, following booming coal demand. The mine was sold two more times: to Magnum Coal in 2005 and to Patriot Coal in 2008. Patriot Coal subsequently went bankrupt in 2015, and the Hobet site was passed into a Virginia-based conservation firm who continued to mine the land while reclaiming and planting trees to offset carbon emissions for other companies.
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Environmental issues in Appalachia, a cultural region in the Eastern United States, include long term and ongoing environmental impact from human activity, and specific incidents of environmental harm such as environmental disasters related to mining. A mountainous area with significant coal deposits, many environmental issues in the region are related to coal and gas extraction. Some extraction practices, particularly surface mining, have met significant resistance locally and at times have received international attention.
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