UPDATE 1-Peabody Energy shuts down mine in Indiana

Wed Sep 5, 2012 5:37pm IST

Related Topics

Stocks

   
Priyanka Gandhi Vadra, daughter of Congress party chief Sonia Gandhi, adjusts her flower garlands as she campaigns for her mother during an election meeting at Rae Bareli in Uttar Pradesh April 22, 2014. REUTERS/Pawan Kumar

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

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

REUTERS SHOWCASE

Asian Markets

Asian Markets

Asian stocks flat after China PMI meets expectations  Full Article 

Chinese Economy

Chinese Economy

Factory activity shrinks for 4th month; pace of decline slows   Full Article 

International Gold

International Gold

Gold hovers near 2-1/2 month lows on firm equities, fund outflows  Full Article 

GM Lawsuit

GM Lawsuit

GM seeks U.S. court protection against ignition lawsuits  Full Article 

Reuters India Mobile

Reuters India Mobile

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