Safety measures for coal mines may cost money, but so does poor safety. Massey Energy (soon to be sold to Alpha Natural Resources) took a net loss of $166.6 million last year. The company made more than $100 million in profits last year, and had higher revenues last year.
The April explosion focused attention on the company’s record of safety violations and drew intense scrutiny from federal mine safety regulators. Massey has cited the increased oversight, an ongoing mine disaster investigation and resulting production declines as reasons for its losses. The company also blamed its lower productivity on difficulty in finding enough mine workers.
In the last quarter of 2010 alone, the company’s losses totaled $70.1 million.