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More layoffs hit coal mines

White County Coal employees received word Friday that layoffs in Carmi, and at River View Coal in Waverly, Ky., will put about 75 people out of work.

In a statement from Heath Lovell, Alliance Coal's vice president of operations, the layoffs amount to slight reductions in the mines' operational units. "Prolonged weak market conditions made this production response necessary," he said.

Alliance owns White County Coal, which operates Pattiki Mine just outside of Carmi, and River View Coal. The two are about an hour drive apart. Lovell didn't say how many of the 75 layoffs occurred at each mine. People close to River View said the number at each mine may not have been determined as of Friday afternoon.

White County Coal applied for a permit on Jan. 27 to continue its underground mining. The application was filed with the Illinois Department of Natural Resources, Office of Mines and Minerals, Land Reclamation Division.

Additional job losses from Alliance came down Friday, affecting White Oak Mine in Hamilton County. In the same release, Lovell said that about 200 employees received temporary layoff notices.

"The temporary layoff became necessary as a result of weak power demand, persistently low natural gas prices, an oversupplied coal market, and overreaching regulations," he said.

Alliance's involvement with White Oak, which its Hamilton County Coal company oversees, dates back to September 2011, when White Oak Mine was still under development. At that time, Alliance put in an initial investment of $69.5 million. Alliance announced in June it would fully acquire White Oak.

Lovell said the temporary layoffs are expected to be lifted after July 1.

In the release, Lovell said, "We deeply regret the impact of these decisions on our employees, their families and their communities."