Patriot Coal

Patriot Coal Corporation

File:Patriot Coal Corp Logo.svg
Company type	Defunct
Industry	Mining
Founded	October 31, 2007
Headquarters	St. Louis, Missouri, USA
Key people	Bennett K. Hatfield Pres, CEO, Dir.
Products	Coal
Number of employees	3,500 (2010)
Subsidiaries	Magnum Coal
Website	patriotcoal.com

Patriot Coal Corporation was a coal mining enterprise based in St. Louis, Missouri. It originated as a spin-off from the eastern U.S. operations of Peabody Energy.

Ranking as the second largest coal producer east of the Mississippi River, Patriot managed 16 mining operations—13 located in West Virginia and three in Kentucky. In 2007, the company sold 22.1 million tons of coal and held proven and probable reserves totaling 1.9 billion tons. Patriot stood as the leading thermal coal producer in the Eastern United States and was also a major supplier of metallurgical coal. Roughly 80% of its coal output was supplied to domestic power plants, while the remaining 20% served both domestic and international steel manufacturers.

The company’s shares began trading on the New York Stock Exchange under the ticker symbol PCX on November 1, 2007.

On July 23, 2008, Patriot expanded by acquiring Magnum Coal Company, a significant Appalachian coal producer operating 11 mines, seven processing facilities, and possessing over 600 million tons of coal reserves.

In mid-2012, Patriot established subsidiaries in New York to facilitate Chapter 11 bankruptcy filings. On July 9, 2012, Patriot along with most of its subsidiaries filed for Chapter 11 protection in the Southern District of New York to address financial difficulties and enhance competitive positioning. The stock value dropped sharply by 72% on the day of filing.

The company reassured retirees that their medical benefits would remain intact but aimed to reduce or eliminate benefit liabilities valued at $1.3 billion through bankruptcy proceedings—a proposal challenged by the United Mine Workers of America representing employees and retirees.

On July 10, 2012, Patriot obtained interim court approval for a $677 million debtor-in-possession loan facility to support ongoing operations during its restructuring process.

Following reorganization, Patriot emerged from Chapter 11 on December 18, 2013, transitioning into a privately held entity.

Safety concerns remained an issue; at West Virginia’s Brody Mine No. 1, two fatalities occurred amid disputes over safety violations identified as pattern violations by federal regulators.

In February 2014, more than 100,000 gallons of coal slurry were released from a Patriot facility into Fields Creek, causing environmental impact on nearby waterways.

On May 12, 2015, Patriot and its subsidiaries again filed for Chapter 11 bankruptcy protection. Later that year in October, Lexington-based Blackhawk Mining acquired most of Patriot’s assets out of bankruptcy for roughly $1 billion.

Patriot announced it would terminate retiree health benefits after December 31, 2016.

Operations

On November 15, 2012, Patriot entered into an agreement with the Sierra Club to discontinue mountaintop removal mining practices due to their environmental impact.