Foundation Coal Announces Idling of the Laurel Creek Mining Complex

Foundation Coal Announces Idling of the Laurel Creek Mining Complex

Foundation Coal Holdings, Inc. said that the Laurel Creek mining complex operated by Foundation Coal affiliates will be idled effective immediately. The Laurel Creek complex, which produced approximately 1 million clean tons of coal in 2008, consists of three active underground mines and an associated preparation plant. The decision to idle the Laurel Creek complex is based on its high cost structure, unfavorable current market conditions, and difficult mining conditions which together make the operation of the mining complex uneconomic. Foundation Coal affiliates expect to record a fourth quarter non-cash impairment charge to write-down all or a portion of the $36.5 million carrying value of Laurel Creek’s long-lived assets.

“The decision to idle the Laurel Creek complex is a necessary step in order to optimize the financial performance of our affiliates in Central Appalachia and will further our position as a low cost producer in the region,” said Chairman and CEO, James Roberts. “Our highly skilled workforce is our most valuable resource, and the workers at Laurel Creek will be considered for employment opportunities at other affiliates within our organization.”

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