U. S. STEEL EXPERIENCING COAL PRODUCTION
PROBLEMS AT TWO MINES
PITTSBURGH, Nov. 21 -- U. S. Steel Group (NYSE: X), a unit of USX
Corporation, announced today that U. S. Steel Mining Company, LLC and USS Coal
Sales, LLC have exercised "force majeure" provisions in their coal supply
contracts due to unexpected production problems experienced at U. S. Steel
Mining's coal mines in Alabama and West Virginia.
Adverse geological conditions, including weak roof conditions, were
recently experienced at both mines and have disrupted and delayed normal coal
production and delivery. These conditions may persist for some time and may
require one or two unplanned longwall moves depending on progress in moving
through the current adverse conditions.
These disruptions in coal operations will have a negative impact on U. S.
Steel Group's fourth quarter, with pretax results from coal expected to decline
by some $10 million to $20 million versus the third quarter 2000.
U. S. Steel Mining is currently assessing the full extent, impact and
possible duration of these conditions, while trying to minimize the impact to
its customers through the implementation of an allocation plan for the limited
product available.
This release includes forward-looking statements concerning the
persistence of adverse conditions at U. S. Steel's coal mining operations and
the impact these conditions will have on fourth quarter 2000 results. Some
factors, among others, that could potentially affect these results include
geologic conditions, potential relocation of longwalls, and the length of time
required to return both mines to normal operations. In accordance with "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995, USX
has included in Form 10-K for the year ended December 31, 1999 and Form 10-Q's
filed for subsequent quarters, cautionary statements identifying important
factors, but not necessarily all factors, that could cause actual results to
differ materially from those set forth in these forward-looking statements.
