Restructuring and Asset Impairment

9 Months Ended

Sep. 30, 2013

Restructuring and Asset Impairment

Restructuring and Asset Impairment

Note 2—Restructuring and Asset Impairment

        In response to the current depressed price environment for thermal coal and geological challenges within the Company's North River mine, the Company announced plans to close the mine in 2013 approximately nine months earlier than the previously expected end of mine life of 2014. In connection with the accelerated closure, the Company renegotiated an unfavorably priced coal sales contract in the second quarter of 2013 to reduce the total tons committed for sale from this mine. The renegotiation allows the closure of this mine in the fourth quarter of 2013. For the nine months ended September 30, 2013, the Company recognized a gain of approximately $17.0 million due to the release of the related below market contract liability that was obtained through the acquisition of the North River mine. The $17.0 million benefit was partially offset by asset impairment charges of approximately $8.0 million, all related to the accelerated closure of the North River mine.

        The Company also incurred $10.7 million of costs related to the curtailment of the Willow Creek mine during the nine months ended September 30, 2013.