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Alpha Natural Resources Agrees to Pay $200 Million over Mine Explosion (ANR)

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Alpha Natural Resources Inc.Alpha Natural Resources Inc. (NYSE: ANR), an Abingdon, Virginia-based coal supplier, has agreed to pay $200 million settle civil and criminal penalties related to a mine explosion in 2010 that killed 29 coal mines, according to a report by the Wall Street Journal. The Journal, citing people familiar with the matter, said that the settlement is expected to be announced today by Booth Goodwin, the U.S. Attorney in Charleston, West Virginia.

Goodwin was leading a criminal investigation into the mine explosion at the Upper Big Branch mine in Montcoal, West Virginia. The accident was the worst U.S. mining disaster in 40 years. The mine was owned by Massey Energy, which was acquired by Alpha Natural Resources in a deal worth $7 billion. Under the terms of the agreement, Alpha Natural Resources also assumed Massey Energy’s liabilities.


The Journal said that the settlement would resolve record civil fines that will be issued by the federal Mine Safety and Health Administration (MSHA) today to Alpha. According to people familiar with the matter, MSHA is expected to issue around 360 safety citations.

The $200 million settlement will also go toward compensation to the families of miners, who were killed at Upper Big Branch. Some of the money will also go toward mine safety research, people familiar with the matter told the Wall Street Journal.

A spokesman for Alpha Natural Resources declined to comment in the issue.

Following the report, Alpha Natural Resources have fallen sharply in trading today. Alpha Natural Resources shares fell to an intra-day low of $24.45. At last check, the stock was down 1.43% to $24.81 on volume of 1.73 million.

Alpha Natural Resources have fallen more than 59% this year, compared with a gain of 0.15% for the S&P 500.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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