Patriot Coal's announcement that it is idling four mines in West Virginia is likely to be followed by idling all over the East and its likely to involve met and steam coal mines alike. The moves are necessary in the current market, and Patriot's action is especially noteworthy. The company was proactive and seems to recognize that it won't win by depleting a highly valuable resource at prices that are short-term difficult but long-term likely to be very strong. Patriot surely has a good plan in place. Bet that it is prepared to dial production back up as soon as the met market weakness eases, which it certainly will.
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