Mine operator Foundation Coal Holdings Inc said that its Central Appalachian affiliates are slashing production levels to meet current demand and laying off 60 workers.

The company's affiliate Kingston Resources is adjusting production at the Kingston mine to reflect lower shipments year to date and reduced demand for the rest of the year. Foundation's affiliated surface mining operations are also cutting production due to scaled back demand amid tough economic conditions.

Mr James Roberts CEO of Foundation Coal said that "These production cuts are within the range anticipated in the revised shipment guidance provided on our Q1 earnings call and do not change our expectations for full year 2009 shipments."

Mr Roberts said that "Following the completion of our merger with Alpha Natural Resources, the combined company will stand ready to increase production when demand growth resumes and will be positioned to deliver future growth with an industry-leading balance sheet and liquidity position."

In the company's Q1 earnings report at the start of the month, Foundation estimated full year coal shipments between 70 million tonnes and 73 million tonnes. Earlier this month Foundation was acquired by Alpha Natural Resources Inc for USD 1.4 billion in an all-stock deal that would create the nation's third-largest coal producer.

(Sourced from AP)