UPDATE 1-Peabody Energy shuts down mine in Indiana

Wed Sep 5, 2012 5:37pm IST

Related Topics

Stocks

   

Sept 5 (Reuters) - Coal miner Peabody Energy Corp said it would close a mine in Indiana as the availability of cheap natural gas depresses demand for coal used in power generation.

Soft market conditions have made operations uneconomical, Peabody said.

The company expects to incur a non-cash after-tax charge of $75 million in the current quarter due to a writedown of assets, it said.

The Air Quality mine in Vincennes, Indiana, which has 230 employees, produced 1.2 million tons in 2011. Peabody's total production was 228.9 million tons in 2011.

The miner said it was working with employees regarding placement opportunities at its other operations.

Weak prices have forced many coal companies, including Alpha Natural Resources Inc, Walter Energy Inc and Consol Energy Inc, to cut production.

Patriot Coal, which was spun off from Peabody in 2007, filed for bankruptcy protection in July.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Market Eye

Sensex, Nifty rise to second consecutive record high

Sensex, Nifty rise to second consecutive record high

The BSE Sensex and Nifty on Friday rose to their second consecutive record highs. The 30-share Sensex surged as much as 1.52 percent to an all-time high of 27,762.13. The broader Nifty gained as much as 1.49 percent to a record of 8,291.65.  Full Article 

REUTERS SHOWCASE

Ban on E-Cigs?

Ban on E-Cigs?

Govt considers ban on e-cigarettes, sale of single smokes.  Full Article 

Commodities

Commodities

Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Cost Cutting

Cost Cutting

PM Narendra Modi boots officials out of the first class cabin  Full Article 

Leisure Riding

Leisure Riding

Harley-Davidson woos affluent young Indians with bike culture  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Moody's on India

Moody's on India

Moody's welcomes India's policy steps, but wants to see more.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage