Coal producer Alliance Resource Partners LP said it was idling a mining unit at its Van Lear mine in Kentucky due to lower demand, affecting 72 employees.

The idled unit is one of the four continuous mining units at the Van Lear mine, a part of the Pontiki mining complex in the Central Appalachian region.

Alliance Resource said that coal production for the remainder of 2009 will be about 150,000 tonnes to 200,000 tonnes lower than previously anticipated.

Mr Joseph Craft CEO of Alliance Resource said that "Demand for coal delivered from Pontiki into the Norfolk Southern rail markets has declined significantly over the last 12 months and current customer indications are that this lack of demand could persist through 2010.”

In April, Alliance forecast 2009 coal production of 27.1 million to 27.5 million tonnes.

(Sourced from Thomson Reuters)