Coping With the Coal Market in Western Pennsylvania

No group has been harder hit by the problems confronting the coal mining industry than small, independent surface mine operators in the eastern US. Burdened by costly government regulations, major capital shortages, declining productivity, high unemployment, and idle and closed mines, many in the industry think the breed will not be able to survive much longer. But there are a few sole owners fighting to remain independent-and succeeding. John Wagner is running a coal stripping operation in northwest Pennsylvania on a unique blend of aggressive management and marketing, support from a team of blue-chip professionals, and some unusual tactics. Though Wagner's approach is hardly an across-the-board formula for survival-he is currently reorganizing under Chapter 11 of the Bankruptcy Reform Act-a look at his operation helps illustrate some of the unique problems confronting eastern surface miners.