Alpha Natural Resources (NYSE:ANR) to reduce workforce by 1,200, close down 8 mines, Shares Fall

Coal-supplier Alpha Natural Resources, Inc.(NYSE:ANR) said on Tuesday unveiled plans that it said would reshape its portfolio of operations and meet the evolving demands of a changing global coal market.

As part of those efforts, it said it would reduce its workforce by 1,200 by early 2013 and would close down eight mines in Virginia, West Virginia and Pennsylvania.

Closing down the mines would result in the elimination of 400 mines, it said while there would also be redeployment of the workforce in other areas of the organisation.

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It was involved in enhancing its international metallurgical coal business planning new mills or constructing new ones in developing areas of Asia, South America and elsewhere, it said, adding that it provided compelling long-term growth opportunities for the company.

There are also plans to streamline its corporate structure. "To align with its smaller production footprint, Alpha's four existing operating regions will be consolidated into two. The realignment will allow these units to reduce operational overhead while enhancing effectiveness. Executive and administrative support for the smaller number of operating properties within these units will be consolidated and proportionally scaled between now and early 2013, resulting in permanent overhead savings."

With all its various initiatives, by early 2013 the company expects that it will be fully aligned to focus on two key strategic priorities: enhancing Alpha's metallurgical coal leadership position in both the domestic and international markets; and establishing a durable core of cost-competitive thermal coal assets better suited to supply structurally shifting power markets in the United States and tap into new thermal markets overseas.

Shares of ANR fell over 3% after soaring 54% in the past one week from its all time low.