Massey Energy chief executive officer Don Blankenship the Mine Safety and Health Administration, saying the isn't even attempting to seriously investigate the Upper Branch mine explosion which killed 29 workers.
More than that though, Blankenship said they're outright lying in an attempt to win publicity wars, rather than perform a legitimate investigation into the matter.
Massey and Blankenship contend the methane involved with the incident leaked in through a floor crack, which resulted in the safeguards in place being overwhelmed. For example, ventilation equipment.
On the other hand, the MSHA set forth a new regulation which requires mines to better manage the coal dust, focusing on that while dismissing the methane issue.
Showing posts with label Upper Big Branch Mine. Show all posts
Showing posts with label Upper Big Branch Mine. Show all posts
Wednesday, September 22, 2010
Monday, September 20, 2010
Macquarie Slashes Massey (NYSE:MEE) After Lower Guidance
After Massey Energy Company (NYSE:MEE) lowered its guidance, Macquarie downgraded the stock from "Outperform" to "Neutral."
Not only has the company lowered its outlook for shipments, but also expects a loss in the third quarter.
Massey's Chairman and CEO Don Blankenship said, "Our operations have continued to struggle since April. As we have noted earlier,
increasingly stringent enforcement actions by MSHA across our
operations and throughout the Central Appalachian region have resulted
in lost shifts and loss of productivity. In addition, our Revolution
longwall mine was idled in June for a planned longwall move but has
remained down pending approval of its ventilation plan. As a result of
these and other factors, we now expect our third quarter shipments to
approximate 10 million tons and we expect to report an operating loss
for the quarter."
Concerning guidance for 2011, Blankenship added, "We remain confident that we will achieve operational improvements going forward. As the Upper Big Branch investigation winds down, we have refocused management time and attention on our ongoing operations and we are initiating actions to improve productivity and re-establish operating consistency in all our mines. In addition, our early negotiations with metallurgical coal customers give us reason to expect pricing in 2011 will be favorable to what we have realized in 2010. Our guidance for 2011 remains unchanged."
Results for the third quarter will be released on after the close of the market on October 26, 2010.
Not only has the company lowered its outlook for shipments, but also expects a loss in the third quarter.
Massey's Chairman and CEO Don Blankenship said, "Our operations have continued to struggle since April. As we have noted earlier,
increasingly stringent enforcement actions by MSHA across our
operations and throughout the Central Appalachian region have resulted
in lost shifts and loss of productivity. In addition, our Revolution
longwall mine was idled in June for a planned longwall move but has
remained down pending approval of its ventilation plan. As a result of
these and other factors, we now expect our third quarter shipments to
approximate 10 million tons and we expect to report an operating loss
for the quarter."
Concerning guidance for 2011, Blankenship added, "We remain confident that we will achieve operational improvements going forward. As the Upper Big Branch investigation winds down, we have refocused management time and attention on our ongoing operations and we are initiating actions to improve productivity and re-establish operating consistency in all our mines. In addition, our early negotiations with metallurgical coal customers give us reason to expect pricing in 2011 will be favorable to what we have realized in 2010. Our guidance for 2011 remains unchanged."
Results for the third quarter will be released on after the close of the market on October 26, 2010.
Tuesday, July 27, 2010
Massey Energy (NYSE:MEE) Earnings Loss From Charges Related to Upper Big Branch
Not unexpectedly, Massey Energy Co (NYSE:MEE) posted a loss for the quarter in light of the charges related to the explosion at Upper Big Branch mine in West Virginia which killed 29 workers; the worst mining accident in 40 years.
Massey had a net loss of $88.7 million, or 88 cents a share. Last year during the same quarter they enjoyed a profit of $20.2 million, or 24 cents a share.
Revenue for the latest quarter beat last year's numbers, coming in at $693.1 million, in contrast to $603.2 million in 2009.
After the mining accident, Massey told shareholders charges would be taken from $80 million to $150 million costs and liabilities related to the incident.
Included in the results for the quarter is pre-tax charges of $128.9 million connected to the accident. Without the charges Massey would have lost 2 cents a share.
Massey had a net loss of $88.7 million, or 88 cents a share. Last year during the same quarter they enjoyed a profit of $20.2 million, or 24 cents a share.
Revenue for the latest quarter beat last year's numbers, coming in at $693.1 million, in contrast to $603.2 million in 2009.
After the mining accident, Massey told shareholders charges would be taken from $80 million to $150 million costs and liabilities related to the incident.
Included in the results for the quarter is pre-tax charges of $128.9 million connected to the accident. Without the charges Massey would have lost 2 cents a share.
Friday, July 2, 2010
Massey Energy (NYSE:MEE) Supervisors Face Criminal Charges Related to Fire
Four Massey Energy (NYSE:MEE) supervisors have been charged with federal crimes in relationship to a fire at Aracoma Alma No. 1 mine in West Virginia, which resulted in the deaths of two miners in 2006.
Charges are they didn't conduct mandatory safety drills at the mine in 2005 and 2006.
The defendant supervisors are: Donald Hagy, Jr., 47, of Gilbert; Terry Shadd, 37, of Chapmanville; Edward R. Ellis, Jr., 38, of Justice; and Michael A. Plumley, 38, of Delbarton.
"We expect all of our miners to follow state and federal laws as well as company policies, which are often more stringent," Massey said in statement. "At the same time, we must recognize that the miners who have been charged have due process rights and are presumed innocent until proven guilty."
It's assumed there has been a plea bargain reached because the four were charged in a federal information, which requires the consent of the defendants in a case.
Massey still faces legal charges related to its Upper Big Branch mine, where 29 workers were killed on April 5.
Charges are they didn't conduct mandatory safety drills at the mine in 2005 and 2006.
The defendant supervisors are: Donald Hagy, Jr., 47, of Gilbert; Terry Shadd, 37, of Chapmanville; Edward R. Ellis, Jr., 38, of Justice; and Michael A. Plumley, 38, of Delbarton.
"We expect all of our miners to follow state and federal laws as well as company policies, which are often more stringent," Massey said in statement. "At the same time, we must recognize that the miners who have been charged have due process rights and are presumed innocent until proven guilty."
It's assumed there has been a plea bargain reached because the four were charged in a federal information, which requires the consent of the defendants in a case.
Massey still faces legal charges related to its Upper Big Branch mine, where 29 workers were killed on April 5.
Wednesday, June 9, 2010
Massey Energy (NYSE:MEE) Sued Over Safety Record
Several institutional investors have joined forces to sue Massey Energy over its mine safety record which they allege led to the explosion at the Upper Big Branch mine in Virginia,
Plaintiffs in the suit include Amalgamated Bank, Manville Trust and CalSTRS.
The lawsuit is directed toward officers and directors of Massey Energy over the issue.
While the institutional investors cite the supposed 38 times the company had been cited for violations, an administrative law judge ruled on Tuesday there was no pattern of violations which would need to lead to stricter regulation at the Upper Branch mine.
The Federal Mine Safety and Health Review Commission judge ruled concerning the No. 1 mine that 10 of the 29 violations weren't of a serious nature, which would drop them below the required 25 needed to establish a pattern.
Plaintiffs in the suit include Amalgamated Bank, Manville Trust and CalSTRS.
The lawsuit is directed toward officers and directors of Massey Energy over the issue.
While the institutional investors cite the supposed 38 times the company had been cited for violations, an administrative law judge ruled on Tuesday there was no pattern of violations which would need to lead to stricter regulation at the Upper Branch mine.
The Federal Mine Safety and Health Review Commission judge ruled concerning the No. 1 mine that 10 of the 29 violations weren't of a serious nature, which would drop them below the required 25 needed to establish a pattern.
Wednesday, May 26, 2010
Massey Energy (NYSE:MEE): More Citations
Massey Energy (NYSE:MEE) received 23 citations from federal mining inspectors since May 14 at the Upper Big Branch mine, where 29 miners were killed in April.
While many of them were related to electrical problems, three were labeled as "significant and substantial," although it wasn't clear as to whether they played any role in the explosions and deaths at the mine.
The citations were issued by the Mine Safety and Health Administration, which oversees the industry.
Those violations considered as more serious were related to what are called escapeways, which must be taken care of very well to ensure workers can leave the area unobstructed in case of emergency situations.
Also cited were travelways, which are exactly what they sound like, means of moving from one working area to another.
The mine is still filled with high levels carbon monoxide, so inspectors haven't been able to go underground yet. Expectations are they may be able to enter the mine by June 2.
While many of them were related to electrical problems, three were labeled as "significant and substantial," although it wasn't clear as to whether they played any role in the explosions and deaths at the mine.
The citations were issued by the Mine Safety and Health Administration, which oversees the industry.
Those violations considered as more serious were related to what are called escapeways, which must be taken care of very well to ensure workers can leave the area unobstructed in case of emergency situations.
Also cited were travelways, which are exactly what they sound like, means of moving from one working area to another.
The mine is still filled with high levels carbon monoxide, so inspectors haven't been able to go underground yet. Expectations are they may be able to enter the mine by June 2.
Wednesday, May 12, 2010
Duke Energy (NYSE:DUK) Says Coal Prices will Rise
Duke Energy (NYSE:DUK) said the price of coal will rise over the next 12 months, citing the accident involving Massey Energy’s (NYSE:MEE) Upper Big Branch coal mine as one of the major factors in the increase in coal prices since the middle of April of 10 percent.
Actions from the Environmental Protection Agency are also the culprit in increasing coal prices, as they are demanding stricter regulations for mine water permits, and have proposed revoking a mining permit of Arch Coal (NYSE:ACI) as well, pushing prices higher.
It seems the government may be doing some of this deliberately in order to push its own energy agenda, which will cost far higher than the price of coal and other energy, but can't compete unless existing energy resources move up in price.
Consequently coal prices are expected to continue rising into 2012.
Actions from the Environmental Protection Agency are also the culprit in increasing coal prices, as they are demanding stricter regulations for mine water permits, and have proposed revoking a mining permit of Arch Coal (NYSE:ACI) as well, pushing prices higher.
It seems the government may be doing some of this deliberately in order to push its own energy agenda, which will cost far higher than the price of coal and other energy, but can't compete unless existing energy resources move up in price.
Consequently coal prices are expected to continue rising into 2012.
Massey Energy (NYSE:MEE) Processing Plant Almost Finished
Massey Energy (NYSE:MEE) announced today the processing plant they've been working on to replace the one that burnt last year is almost completed in West Virginia.
Operations at the new plant are scheduled to begin in September, and will be named after one of the retired directors of the company, Richard Zigmond, and will be named Zigmond Processing.
The new plant will employ over 480 people said Massey, and will be involved with processing coal from six mines.
Massey is still recovering from the mining disaster at the Upper Big Branch mine which cost 29 workers their lives.
Operations at the new plant are scheduled to begin in September, and will be named after one of the retired directors of the company, Richard Zigmond, and will be named Zigmond Processing.
The new plant will employ over 480 people said Massey, and will be involved with processing coal from six mines.
Massey is still recovering from the mining disaster at the Upper Big Branch mine which cost 29 workers their lives.
Wednesday, April 21, 2010
Massey Energy (NYSE:MEE) Taking Charge in Second Quarter on Upper Big Branch Accident
Massey Energy (NYSE:MEE) said in the second quarter the company will take a charge from the explosion at its Upper Big Branch mine which killed 29 workers.
With metallurgical coal being a prime product and the loss of production at the Upper Big Branch mine, Chief Executive Officer Don Blankenship said they'll make up for that by increasing production at all operating metallurgical coal mines by increasing the work week to six days and adding adding three continuous miner sections at Elk Run mines, which is close to Upper Big Branch.
"Financial results for the second quarter 2010 will include a charge related to the tragic accident at the Upper Big Branch mine," said Blankenship.
"While Massey anticipates further analysis will be required, the company estimates the range of loss to be $80 million to $150 million for charges related to the benefits being provided to the families of the fallen miners, costs associated with the rescue and recovery efforts, insurance deductibles, possible legal and other contingencies."
First quarter results exceeded analysts expectations, as net income was $33.6 million, or 39 cents a share, whereas analysts had been looking for 27 cents a share. Last year during the same quarter net income was $43.4 million, or 51 cents a share.
With metallurgical coal being a prime product and the loss of production at the Upper Big Branch mine, Chief Executive Officer Don Blankenship said they'll make up for that by increasing production at all operating metallurgical coal mines by increasing the work week to six days and adding adding three continuous miner sections at Elk Run mines, which is close to Upper Big Branch.
"Financial results for the second quarter 2010 will include a charge related to the tragic accident at the Upper Big Branch mine," said Blankenship.
"While Massey anticipates further analysis will be required, the company estimates the range of loss to be $80 million to $150 million for charges related to the benefits being provided to the families of the fallen miners, costs associated with the rescue and recovery efforts, insurance deductibles, possible legal and other contingencies."
First quarter results exceeded analysts expectations, as net income was $33.6 million, or 39 cents a share, whereas analysts had been looking for 27 cents a share. Last year during the same quarter net income was $43.4 million, or 51 cents a share.
Saturday, April 10, 2010
Coal Prices Up On Massey (NYSE:MEE) Mine Explosion
Coal prices soar after Massey mine explosion
The explosion at a Massey Energy (NYSE:MEE) mine has caused the price of metallurgical coal to increase as a tight coal market will continue to struggle with the loss of coal supply.
Now that the final four miners' bodies have been found, bringing the total loss of life to 29, it becomes the worst mining accident since 1970.
It'll take months to find the cause behind the explosions, and that will drag on the coal market for some time.
Metallurgical coal is a higher quality product, and demand is high for it, especially in Asia.
Estimates for the Upper Big Branch mine was to ship about 1.6 million tons of metallurgical coal in 2010, about 3 percent of all production in the U.S., based on numbers from 2009.
Even with increased production at other mines, Massey said it's doubtful they're be able to replace what the Upper Big Branch mine would have produced.
With spot prices already increasing by 22 percent, steelmakers will be under pressure, determined by whether or not they'll have to eat the higher prices and have their margins fall, or they are able to pass them on to their customers.
The explosion at a Massey Energy (NYSE:MEE) mine has caused the price of metallurgical coal to increase as a tight coal market will continue to struggle with the loss of coal supply.
Now that the final four miners' bodies have been found, bringing the total loss of life to 29, it becomes the worst mining accident since 1970.
It'll take months to find the cause behind the explosions, and that will drag on the coal market for some time.
Metallurgical coal is a higher quality product, and demand is high for it, especially in Asia.
Estimates for the Upper Big Branch mine was to ship about 1.6 million tons of metallurgical coal in 2010, about 3 percent of all production in the U.S., based on numbers from 2009.
Even with increased production at other mines, Massey said it's doubtful they're be able to replace what the Upper Big Branch mine would have produced.
With spot prices already increasing by 22 percent, steelmakers will be under pressure, determined by whether or not they'll have to eat the higher prices and have their margins fall, or they are able to pass them on to their customers.
Last Massey (NYSE:MEE) Miners Found Dead
Four Missing Massey Miners Found Dead
The four missing miners of the Massey Energy explosion at the Upper Big Branch in West Virginia were found dead, bringing the total death count to 29, now the worst disaster since 1970.
Hopes were the four had reached a place of safety prepared for miners in situations like these, but rescuers said they were killed instantly in the explosion, and had no chance to try to reach safety.
Rescuers had actually passed the four bodies before, but conditions kept them from seeing them.
While cited numerous times for safety violations, the company did improve many of them in response to those violations, and while the numbers look huge, officials from the company said much of that has to do with the size of the mine, which is one of the largest in the state.
The investigation itself as to the cause of the explosion will take months to complete.
The four missing miners of the Massey Energy explosion at the Upper Big Branch in West Virginia were found dead, bringing the total death count to 29, now the worst disaster since 1970.
Hopes were the four had reached a place of safety prepared for miners in situations like these, but rescuers said they were killed instantly in the explosion, and had no chance to try to reach safety.
Rescuers had actually passed the four bodies before, but conditions kept them from seeing them.
While cited numerous times for safety violations, the company did improve many of them in response to those violations, and while the numbers look huge, officials from the company said much of that has to do with the size of the mine, which is one of the largest in the state.
The investigation itself as to the cause of the explosion will take months to complete.
Tuesday, April 6, 2010
25 Known Dead After Mine Explosion
Mine Explosion and its consequences to all affected by it
As the tragedy continues to unfold at the Upper Big Branch mine in West Virginia, 25 miners are now confirmed to be dead, with four still missing.
The tremendous amount of toxic gas in the mine stopped operations during the night, and it increasingly looks like the possibility of anyone surviving the blast or exposure to methane gas and carbon monoxide is low at best.
Hopes are based on the remaining workers having had time to get to what is called a refuge chamber, which are built for events like these.
With a history of fines related to the Massey Energy Co., they could be financially devastated from the consequences if they are found at fault for the disaster. Of course that's obviously not the most important part of the tragedy, but it isn't just the company which would be hurt, but the remaining workers who are now in limbo, and will probably have to wait for some time to find out their futures as well.
Overall, there are never any winners in a situation like this, and no matter what happens, it'll be painful for all involved.
As the tragedy continues to unfold at the Upper Big Branch mine in West Virginia, 25 miners are now confirmed to be dead, with four still missing.
The tremendous amount of toxic gas in the mine stopped operations during the night, and it increasingly looks like the possibility of anyone surviving the blast or exposure to methane gas and carbon monoxide is low at best.
Hopes are based on the remaining workers having had time to get to what is called a refuge chamber, which are built for events like these.
With a history of fines related to the Massey Energy Co., they could be financially devastated from the consequences if they are found at fault for the disaster. Of course that's obviously not the most important part of the tragedy, but it isn't just the company which would be hurt, but the remaining workers who are now in limbo, and will probably have to wait for some time to find out their futures as well.
Overall, there are never any winners in a situation like this, and no matter what happens, it'll be painful for all involved.
Seven Dead in Mining Explosion, 19 Missing
Big Branch mining explosion
The Massey Energy (NYSE:MEE) Company's Upper Big Branch mine was the location of an explosion which has seven confirmed dead, and 19 still missing or unaccounted for.
The Upper Big Branch mine is an underground mine located in West Virginia. Performance Coal Company, a subsidiary of Massey, operates the mine.
Mining deaths have been on the downswing, with deaths last year numbering only 34, the lowest number on record since they began to be counted.
There is no information being made available at this time at to the circumstances surrounding the remaining 19 miners unaccounted for. The explosion occurred at 3:00 PM EST.
Original statistics were six dead and 21 missing or unaccounted for at the mine.
The Massey Energy (NYSE:MEE) Company's Upper Big Branch mine was the location of an explosion which has seven confirmed dead, and 19 still missing or unaccounted for.
The Upper Big Branch mine is an underground mine located in West Virginia. Performance Coal Company, a subsidiary of Massey, operates the mine.
Mining deaths have been on the downswing, with deaths last year numbering only 34, the lowest number on record since they began to be counted.
There is no information being made available at this time at to the circumstances surrounding the remaining 19 miners unaccounted for. The explosion occurred at 3:00 PM EST.
Original statistics were six dead and 21 missing or unaccounted for at the mine.
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