Coal Plants Shuddered in Jersey, Layoffs at Arch Coal (ACI), Industry in Shambles
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Market Vectors Coal ETF (NYSE: KOL) shed 3.75 percent intra-day on Thursday and is lower by more than 25 percent in the past 3 months. The selloff tells the story of an industry that is clearly in shambles.
Today, Arch Coal Inc. (NYSE: ACI) laid off 750 miners in Kentucky and West Virgina. Arch Coal share prices cratered this year as demand for coal from power companies has slumped in favor of natural gas.
"The U.S. coal industry is in the midst of a restructuring that will cause some players to exit the market and others, like Arch, to pare back operations until market conditions improve," John Eaves, Arch's new chief executive, said in a press release in May.
In related news, today New Jersey's B.L. England coal power plant announced it will shut down one coal unit and convert two others to natural gas to reduce air emissions.
This development is another example of power companies in the U.S. opting to burn cleaner natural gas instead of coal to generate electricity. Only six coal-fired units are still operating at four other power plants in New Jersey. New Jersey Governor Chris Christie has pledged to oppose the opening of any new coal-fired plants in the state, according to reports.
Today, Arch Coal Inc. (NYSE: ACI) laid off 750 miners in Kentucky and West Virgina. Arch Coal share prices cratered this year as demand for coal from power companies has slumped in favor of natural gas.
"The U.S. coal industry is in the midst of a restructuring that will cause some players to exit the market and others, like Arch, to pare back operations until market conditions improve," John Eaves, Arch's new chief executive, said in a press release in May.
In related news, today New Jersey's B.L. England coal power plant announced it will shut down one coal unit and convert two others to natural gas to reduce air emissions.
This development is another example of power companies in the U.S. opting to burn cleaner natural gas instead of coal to generate electricity. Only six coal-fired units are still operating at four other power plants in New Jersey. New Jersey Governor Chris Christie has pledged to oppose the opening of any new coal-fired plants in the state, according to reports.
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