PIKEVILLE, Ky. (FOX 56) — The largest coal producer in the eastern United States will permanently close its Kentucky operation, representatives said.

On Nov. 15, Alliance Resource Partners and its subsidiary, Excel Mining, announced plans to end its operations in Pikeville, affecting nearly 300 employees.

“The decision to issue WARN notices at the MC Mining Complex was not made lightly,” Joseph W. Craft, III, chairman, president, and CEO, said. “Despite our continued efforts to navigate challenging geology and market conditions, persistent weakness in coal demand, compounded by some delays in timely payment for committed coal sales, has necessitated this difficult but necessary step to begin winding down production operations. We deeply regret the impact this decision has on our employees, their families, and their communities.”

Reports show that eastern Kentucky has remained the top producer of Kentucky coal, with Pike County ranking the second highest producer. According to the Kentucky Energy and Environment Cabinet, the closure will eliminate nearly 35% of Pike County’s coal jobs.

“One out of five U.S. operating coal mines are located in Kentucky, and it has more mines than in any other state except for West Virginia,” the U.S. Energy Information Administration said.

As of Nov. 15, the MC Mining Complex began to reduce coal production by “two production units,” representatives said.

“Combined with current inventory, mining from the two production units will continue to supply existing contractual commitments before ceasing in anticipation of the mine’s permanent closure,” a news release said. “Excel 1 employees not involved in the reduced production of coal will focus efforts on reclamation activities throughout the MC Mining Complex.”