These are the top-producing Central Appalachia coal mines in Q2’14

U.S. Mine Safety and Health Administration data analyzed by SNL Energy shows coal production at Central Appalachia’s top-producing mines had increased about 7.7% to 43.75 million tons in the 12 months ended in the second quarter compared to the year-ago period. Though coal operators that operate in the region have faced some unique challenges, among Central Appalachia’s top-producers, most mines recorded production growth in the 12 months ended in the second quarter compared to the same period a year ago.

An SNL Energy analysis found that Central Appalachia counties have been among the hardest hit by a recent decline in coal jobs. Of the 17,072 jobs the coal industry lost between a near-term employment peak in the fourth quarter of 2011 and the first quarter of 2014, 84% of those jobs were lost in Appalachian states. The top five counties by coal mining job losses were all in Appalachia.

Retiring President and COO Nick Carter of Natural Resource Partners LP told SNL Energy in a recent interview that producers are moving out of the region because coal mining there is expensive. He said many operators in Central Appalachia are moving to the Illinois Basin and will not be coming back.

Producers with a significant presence in the basin have faced many obstacles. Patriot Coal Corp. recently emerged from bankruptcy reorganization as a private company after struggling to continue its operations, primarily based in Central Appalachia. James River Coal Co. is undergoing the process of Chapter 11 bankruptcy reorganization.

Meanwhile, Alpha Natural Resources Inc., a major producer in the basin, has announced a significant restructuring of its West Virginia operations. The company issued potential job loss notices to approximately 1,100 employees as it prepares for more sluggishness in coal markets.

CONSOL Energy Inc.‘s Buchanan No. 1 mine out-produced any other coal mine in the region with 948,691 tons in the second quarter, despite a decline in production from 1.19 million tons in the year-ago period. The mine’s production has increased 13.0% to 4.40 million tons for the 12 months ended in the second quarter compared to the year ago period.

In an operations update July 15, CONSOL cited continued market weakness as the reason for reducing its 2014 production guidance for Buchanan, a low-vol metallurgical coal mine. CONSOL said it now expects Buchanan to produce between 3.4 million and 3.8 million tons in 2014, down from previous guidance of 3.6 million to 4.2 million tons.

Alpha has nine mines that are among the 25 top-producing coal mines in Central Appalachia for the second quarter. Four of those reported less production in the 12 months ended in the second quarter compared to the year-ago period.

Alpha’s Twilight mine, one of the mines subject to recent layoff notices issued by Alpha, has dropped production 24.5% in the 12 months ended in the second quarter compared to a year ago. Other mines targeted by Alpha for potential closure — Republic Energy and Black Castle — also reported double-digit percent-declines in the same period.

The Edwight mine, another mine where Alpha issued layoff notices, actually reported a 2.8% boost in production in the 12 months ended in the second quarter compared to a year-ago. Other Alpha mines posted significant production gains in the 12 months ended in the second quarter, including the Ruby Energy and No. 9A mines, which both increased production by about 25.6% in the period.

The largest percent decline in the basin was at Arch Coal Inc.‘s Mountaineer II mine. The mine produced 1.89 million tons of coal in the 12 months ended in the second quarter, about 28.4% less compared to the year-ago period.

Mountaineer II primarily serves the met coal market. The mine is a part of the company’s Mountain Laurel complex, which has been at the center of an alleged illegal kickback scheme being investigated by federal authorities.

Arch also reduced production at its Coal-Mac Inc. Holden No. 22 surface mine and its Beckley Pocahontas mine in the 12-month period.

Patriot has ramped up production at its Samples, Hobet 21 surface and American Eagle mines when comparing both the most recent quarter and the 12 months ended in the second quarter compared to the same periods a year ago. The most dramatic of Patriot’s gains was at Samples, which produced 1.99 million tons in the 12 months ended in the second quarter compared to 1.00 million tons in same period a year ago.

Production at Patriot’s Winchester and BC No. 1 deep mines declined for the 12 months ended in the second quarter compared to the same period last year.

Alliance Resource Partners LP, primarily an Illinois Basin operator, reported its No. 4 mine in Central Appalachia produced 1.49 million tons of coal in the 12 months ended in the second quarter. The mine produced 456,921 tons in the second quarter compared to 231,454 tons in the year-ago quarter.