West Virginia’s railroad coalfields take another blow: Alpha Natural Resources projects 1,100 layoffs at southern W.Va. mines this fall

In an announcement published on Thursday July 31, executives at Alpha Natural Resources, one of the nation’s largest coal producers said it expects to lay off 1,100 workers at approximately 11 southern West Virginia surface coal mines by mid-October, attributing the layoffs to dismal markets and rigorous federal regulations.

Eastbound empties pass the eastbound absolute signal at W.E. MacCorkle Siding on CSX's Coal River Subdivision. The train is enroute to Danville area coal mines, an area that will not be directly impacted by Alpha's downsizing. 

West Virginia and the Appalachian coal-mining region of eastern Kentucky and southwestern Virginia have been plagued with strict coal mining regulations and a fluctuating market driven by competitive fuel pricing for years. As opposed to discontinuing all production, many companies have instead reduced manpower and production to compensate for the inconsistent market. In rare instances, jobs are occasionally restored to accommodate new contracts or increase in demand, but most generally, the mines reduce their production and continue operation on a very limited basis.

So how will these significant layoffs affect railroad operations? In a release issued by Alpha Natural Resources, the affected mines are in the counties of Logan, Mingo, Boone, Raleigh, Kanawha, and Fayette counties. In simpler geographical terms, a broad area spanning across the majority of West Virginia’s southern coalfields, an area dotted with abandoned right-of-ways, former coal camps, and mine properties. Both CSX and Norfolk Southern operate a web of obscure mining branches throughout the coalfields, many of which actively serve Alpha-owned properties. 

Let’s break down the affected mines by railroad region… Alpha’s Highland Mining’s Superior Mine and Trace Fork surface mines are included in the projected layoffs. Those properties are actively served by CSX as part of its former Chesapeake & Ohio Guyandotte coalfields, centered from the railroad’s Peach Creek terminal in Logan.

Several ridges to the east along CSX’s Coal River Subdivision and its respective branch lines, rail operations will essentially continue unchanged, as none of Alpha’s projected territories will directly impact mines served by CSX out of its Danville terminal.

Unfortunately, the coalfields of CSX’s Big Coal Subdivision several ridgelines east of Danville will be the most affected area. Alpha’s Black Castle surface mine in Boone County will impact the railroad’s Homer # 3 rail operations. Alex Energy’s Edwight surface mine in Raleigh County will potentially impact the railroad’s Goals load out near Elk Run Junction. While unclear, Marfork mine may also be affected by the layoffs. This will further cripple rail operations out of Elk Run Junction, a once profitable coal-mining region along the Chesapeake & Ohio.

During better days... Eastbound empties (left) meet westbound loads in the Big Coal Bypass siding on the railroad's Big Coal Subdivision in Sproul, W.Va. The empties are bound for Prenter Mine on the now abandoned Seth Subdivision. The westbound loads are enroute to St. Albans, W.Va. from Elk Run area coal mines, an area that will be drastically impacted by Alpha's projected layoffs. April 2008. 

To add salt to the wound per se, executives with Coal River Energy announced on Aug. 12 its intentions to idle production at its large Fork Creek mine, resulting in as many as 280 lost jobs. The underground Fork Creek mine is an actively served mine along CSX’s Big Coal Subdivision near Sproul.

The two companies issued their Work Adjustment and Retraining Notification (WARN) Act notices on July 31 and Aug. 12 to affected employees. The companies will continue evaluating projected market demands throughout the next 60 days. No immediate reductions are occurring, but they are planned to take place by mid-October.

 Once reduction begins, rail operations along CSX’s southern coalfields could be drastically impacted along its Big Coal Subdivision, which feeds into the Coal River Subdivision at Sproul, and into the double track Russell, KY to Hinton, W.Va. mainline in St. Albans, W.Va.