Alpha Natural Resources’ Twilight surface mine complex in Boone County, W.Va. Photo by Ami Vitale, www.amivitale.com.

Alpha Natural Resources, one of the largest coal mining companies in the United States and a big player in the Appalachian coal market, filed for Chapter 11 bankruptcy on Monday of this week, coincidentally on the day President Obama announced his administration’s final Clean Power Plan.

In the announcement, Alpha blamed “an unprecedented period of distress with increased competition from natural gas, an oversupply in the global coal market, historically low prices due to weaker international and domestic economies, and increasing government regulation that has pushed electric utilities to transition away from coal-fired power plants.”

According to the release, the company does not anticipate closing the business down, but will “seek the necessary immediate relief from the Bankruptcy Court that will allow normal business operations to continue uninterrupted while in Chapter 11, with coal being mined, customer commitments honored, and wages and benefits for Alpha’s affiliated employees paid.”

A Bloomberg Business article notes that Alpha, which employs nearly 8,000 workers at more than 50 underground and surface mines and more than 20 coal preparation facilities in Virginia, Kentucky, West Virginia, Pennsylvania and Wyoming, has accumulated $3.3 billion in debt over the past several years.

The Wall Street Journal reports that Alpha has assets of $10.1 billion, liabilities of $7.1 billion, and is “seeking up to $692 million in bankruptcy financing from senior lenders and secured bondholders to fund its operations.”

United Mine Workers of America responded to the news:

“Today’s Chapter 11 bankruptcy filing by Alpha Natural Resources appears to follow the same script as others we’ve seen this year: pay off the big banks and other Wall Street investors at the expense of workers, retirees and their communities … Alpha needs to understand that while we are willing to discuss ways forward that will be of mutual benefit for the company and for our members, we are also prepared to do whatever we need to do to maintain decent jobs with the pension and health care benefits our retirees were promised and have earned.”

Alpha launched a new website to detail the Chapter 11 process, including contact information and FAQs for employees, customers, retirees and other stakeholders.

Is there an echo in here?

The move brings to mind the financial roller coaster of Patriot Coal, the West Virginia-based company that emerged from its first bankruptcy in 2012 only to file again a scant 3 years later in May of this year. Patriot’s initial 2012 “restructuring” plan was extremely controversial as it involved slashing the healthcare benefits of 1,800 union miners and retirees. Patriot initially won court approval for the cut, but, after significant public scrutiny and outrage, settled with the United Mine Workers of America in 2013 for $400 million to cover the benefits.

And now history seems to be repeating itself. According to an AP story that is quoted on Coal Tattoo (yet mysteriously disappeared from national news outlets, including the Washington Post), just a few weeks ago Patriot asked a judge’s permission to “reject the company’s collective bargaining agreement with union miners and change retirees’ health care benefits …” The United Mine Workers of America filed an objection to the proposed plan, which includes $6.4 million in bonuses paid to management employees.

Just this week, the beleaguered company announced the layoff of 1,081 coal miners, most in West Virginia’s Kanawha County.

Patriot Coal is also the first coal company in Appalachia to announce it would phase out the devastating practice of mountaintop removal coal mining.

“Big Coal’s war on itself”

When examining the financial tribulations of big coal mining companies, industry officials are quick to point the finger at what they have dubbed the “war on coal,” claiming that environmental regulations are the primary culprits causing their fiscal misfortunes. But according to a recent article co-authored by independent financial analyst Andrew Stevenson and NRDC’s Dave Hawkins, coal mining’s economic downturn has more to do with bad investment decisions than anything else.

“The biggest cause of Big Coal’s loss of value is that Big 3 management bet big on a global coal boom and lost big when it went bust,” Stevenson and Hawkins write. Their article goes on to detail the five specific reasons Alpha and other coal companies are on the brink of bankruptcy.

“In sum, bad bets at the top of the market, weak met coal prices, cheap natural gas, and lower power demand due to energy efficiency reduced cumulative forecasted coal revenues for the Big 3 by approximately $21 billion over the past four years. This is a big hit for companies as highly leveraged as Alpha Natural, Arch Coal, and Peabody Energy and the reason why these companies are struggling to stay afloat today.”

As industry officials and coal-friendly politicians — including an outspoken Mitch McConnell (R-Ky.), who notedly said, “I am not going to sit by while the White House takes aim at the lifeblood of our state’s economy” — themselves take aim at the Clean Power Plan, they have yet to acknowledge the most important question on the table: what will happen to residents in Appalachia’s coal country who, because of company bankruptcies, layoffs, revocation of pensions and lack of other job opportunities, remain among the poorest in the nation?

So far, the only offer of assistance to these folks has come from President Obama himself, in the form of the POWER+ Plan to revitalize the region.

“They’ll claim [the Clean Power Plan] is a “war on coal,” to scare up votes — even as they ignore my plan to actually invest in revitalizing coal country, and supporting health care and retirement for coal miners and their families, and retraining those workers for better-paying jobs and healthier jobs,” Obama said on Monday, taking aim at McConnell and his other critics. Communities across America have been losing coal jobs for decades. I want to work with Congress to help them, not to use them as a political football.