Alpha Natural Resources (ANR) is retreating after the company announced that it would discontinue mining at four of its mines because they had become unprofitable. The company explained that continued market pressures, along with new regulations on coal-fired power plants, had made operating the mines "uneconomic." In addition to closing the four Kentucky mines, Alpha Natural plans to idle two coal preparation plants, reduce production at several other mines, and close four contract mines. Alpha reiterated its 2012 shipment guidance, as the cutbacks announced today had already been baked into the guidance. Finally, Alpha Natural added that it would close four of its satellite offices, and expects to save $50M-$60M per year as a result of that move. In early trading, Alpha Natural lost 25c, or 2.72%, to $9.31. Other coal mining companies, including Peabody (BTU), Arch Coal (ACI), Patriot Coal (PCX), and CONSOL (CNX), also dropped.
The flap over Apple’s corporate tax strategy might sound like a snoozer, until you consider who makes up the difference …