SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported)
September 6, 1995
ASHLAND COAL, INC.
(Exact name or registrant as specified in its charter)
Delaware 1-9993 61-0880012
(State or other (Commission file number) (I.R.S.Employer
jurisdiction of Identification No.)
incorporation or
organization)
2205 Fifth Street Road, Huntington, West Virginia 25701
(Address of principal executive offices) (Zip Code)
P.O. Box 6300, Huntington, West Virginia 25771
(Mailing Address) (Zip Code)
Registrant's telephone number, including area code: (304) 526-3333
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Item 5. Other Events.
On September 6, 1995, Hobet Mining, Inc. (Hobet), an
independent operating subsidiary of Ashland Coal, Inc. (Ashland
Coal), issued Worker Adjustment and Retraining Notification Act
(WARN) notices at its Hobet 07 surface mine and Hobet 12 (Pine
Creek) preparation plant. This complex is located in Logan and
Mingo counties, West Virginia and employs approximately 260
persons. The original mine-plan for Hobet 07 contemplated
utilization of mountaintop removal methods employing a dragline for
recovering most of the reserves at the mine, but lower-than-
expected coal prices have adversely affected the ability to
economically mine reserves at Hobet 07 using such technology.
Layoffs at the Hobet 07 complex could begin in about 60 days.
However, Hobet is optimistic economic operations at the complex can
continue in some form. Because several competing options to reduce
mining costs are currently under consideration by management, at
this time Ashland Coal cannot predict what changes will ultimately
occur at the Hobet 07 complex and the effect of any such changes on
Ashland Coal's future financial performance. In 1994, Hobet 07
produced approximately 2.2 million tons of coal, or about 11% of
the total 1994 production of Ashland Coal's operating subsidiaries.
Item 7. Financial Statements and Exhibits.
99.1 Press Release issued September 6, 1995, by Ashland
Coal, Inc. in respect of WARN notices at Hobet Mining, Inc.'s 07
and 12 operations.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
ASHLAND COAL, INC.
(Registrant)
By: /s/ Roy F. Layman
Administrative Vice
President and Secretary
Date: September 6, 1995
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David G. Todd
Vice President
(304)526-3755
For Immediate Release
September 6, 1995
HOBET MINING, INC. ISSUES WARN NOTICES
AT HOBET 07 AND HOBET 12 OPERATIONS
Huntington, WV -- Ashland Coal, Inc. today announced that
its operating subsidiary, Hobet Mining, Inc., has issued Worker
Adjustment and Retraining Notification Act (WARN) notices at its
Hobet 07 surface mine and Hobet 12 preparation plant. This
complex is located in Logan and Mingo counties, West Virginia.
"Despite the issuance of these notices, we continue to study
possible scenarios for the future of these operations," stated
John Lowe, vice president and general manager of Hobet Mining,
Inc. "We are working very hard to find an economically viable
plan for the future development of the complex that would not
involve large-scale layoffs. However, despite our best efforts,
such layoffs may prove necessary."
"These layoffs could begin in about 60 days," Lowe
continued. For this reason, the company is required to issue
WARN notices at this time. However, Lowe indicated that he
remains optimistic that operations at Hobet 07 will continue in
some form.
The WARN notices are the latest in a series of
communications to employees con-
cerning the mine's uncertain future. The Hobet management team
has previously conducted meetings with all employees to explain
the serious challenges facing the mine, and employees were
alerted that layoffs were possible.
-more-
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"For some time now we have been growing increasingly
concerned that the original mine-life plan for Hobet 07 was in
jeopardy due to an ever more competitive business environment,"
Lowe said. "We recognize that this is a very difficult time for
the affected employees and we sincerely hope large-scale layoffs
can be avoided. We will continue to investigate every possible
course of action in an effort to keep as many Hobet 07 and Hobet
12 employees working as possible. We continue to believe that,
with some level of restructuring, a viable mining operation can
continue at the location."
Ashland Coal, Inc. (NYSE:ACI) is engaged in the mining,
processing and sale of low-sulfur coal, and markets its coal
principally to electric utilities in the eastern United States
and into the export markets.
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