Wabash Mine Holding Seeks Effects Bargaining With UMWA

Foundation Coal Holdings, Inc. (NYSE:FCL) today announced that its affiliate, Wabash Mine Holding Company (Wabash), has contacted the United Mine Workers of America (UMWA) to schedule additional discussions on the effects of closing the Wabash Mine. The company announced earlier that Wabash will close its operations, and workers will begin the process of removing equipment from the mine, sealing open slopes and shafts, and abandoning the underground works.

“We are hopeful that the UMWA will move quickly to return to the bargaining table to discuss the issues that are critical to supporting our employees during this difficult time,” said Jeffrey Kukura, Wabash president. “It is only through the collective bargaining process that we can mutually arrive at a favorable severance program for our more than 230 hourly workers. The mine has operated for more than thirty years, and many of our employees have been there much of their careers.”

The Wabash Mine has faced significant competitive challenges in recent years. In 2002, Wabash and the UMWA negotiated a labor contract that reflected wage and other concessions in recognition of those challenges, while at the same time Wabash committed to investing additional capital in the mine. Over the term of the 2003 agreement, which expired at 11:59 PM on March 31, 2007, Wabash invested more than $32 million in capital while still losing money each year. Despite the combined best efforts of Wabash and its employees, the Wabash mine was unprofitable every year of the recently expired contract.

In light of ongoing poor financial results, discussions between Wabash and the UMWA to amend the 2003 contract took place during its term. Wabash has provided financial information to the UMWA during negotiations supporting these historical facts, in addition to models showing ongoing losses over the coming years in the event that Wabash signed the 2007 National Bituminous Coal Wage Agreement as the UMWA has insisted. Through no fault of anyone, and despite the best efforts of all employees, the difficult decision has been made to close the mine.

Foundation Coal Holdings, Inc., through its affiliates is a major U.S. coal producer with 13 coal mines and related facilities in Pennsylvania, West Virginia, and Wyoming. Through its subsidiaries Foundation Coal employs approximately 3,000 people and produces approximately 72 million tons annually, largely for utilities generating electricity. Foundation’s corporate offices are in Linthicum Heights, MD.