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Frasure Creek Coal suspends production, auctions equipment

WEST Virginian producer Frasure Creek Coal has suspended some Appalachian operations and is prepa...

Donna Schmidt

The chief of restructuring of parent company Trinity Coal, David Stetson, told the Register-Herald that it would sell about 180 pieces of mining and earth-moving machinery in a September auction. He said the fleet was no longer needed as it was primarily from its Kentucky operations, which were no longer active.

Additionally, while he told the regional newspaper the shutdowns of the Fayette County properties were already in order, the suspensions were not permanent. Operations were set to resume in September.

A customer request for a one-month deferment led to the decision to temporarily stop production, Stetson told the R-H, and that its move was not an indication of changes to its future operational scale.

He did not comment on rumors of a restructuring or sale. The rumors, along with hints of bankruptcy, grew louder last month when auctioneer Richie Brothers announced an equipment auction in North Carolina involving Trinity’s fleet.

However, Stetson said bankruptcy was not a part of the company's plan.

Trinity chief operating officer Mike Jamison also said he knew of no such plans.

Wes Russ Hunter, from the West Virginia Department of Environmental Protection, said neither it nor the state Office of Surface Mining had received any documentation seeking a transfer, sale or bankruptcy.

“We're just kind of keeping our eyes on that ball, but as far as anything being official or filed I haven't seen anything,” Hunter said.

According to state records, Trinity filed for Chapter 7 voluntary bankruptcy in October 2005. It was discharged in 2006.

Trinity’s Frasure Creek Coal has both surface and underground operations in Kentucky and West Virginia, including permits for four surface mines, three underground mines, haul roads, a conveyer and prospects.

Four of the company’s surface mine permits are pending with the WVDEP.

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