Why Alpha Natural Resources (ANR) Is Down Today
Alpha Natural Resources (ANR) falls in the wake of the news that the second-largest U.S. coal producer would pay a $27.5 million fine under a proposed settlement with the U.S. government over poisonous discharges from the company's mines in five states. Under the terms of the settlement, Alpha Natural Resources would pay the fine and spend approximately $200 million on wastewater treatment systems. The company and 66 subsidiaries will install and operate the systems and institute upgrades across the system to decrease the toxic discharges from coal mines in Kentucky, Pennsylvania, Tennessee, Virginia and West Virginia, according to Bloomberg. Goldman Sachs also downgraded Alpha Natural Resources to "sell" from "neutral" due to the company's lower met coal forecasts. The firm decreased its target price to $4 from $6.