Investigation Opened Into Blackjewel Mining

Frankfort, KY — Kentucky’s Attorney General’s Office will open an investigation into whether coal companies are posting performance bonds intended to secure employee wages. Reports indicate that Blackjewel LLC failed to post the bond with the Kentucky Labor Cabinet when it filed for bankruptcy July 1st which caused miners’ paychecks to bounce. Kentucky law requires any coal or construction business under five years old to pay the bond to cover payroll for four weeks, that according to Attorney General Andy Beshear. The Labor Cabinet has issued Blackjewel a citation including a $366,500 fine for violating the law. Blackjewel says it will reimburse employee by collecting a per-ton fee expected to accumulate $550,000 over the next two years. It says it will also pay workers $450,000 from a deal allowing Kopper Glo Mining to purchase two Blackjewel mines.