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

REUTERS SHOWCASE

Press Event

Press Event

Modi takes tea, but no questions, in first press event as PM.  Full Article 

Monetary Policy

Monetary Policy

Finance Minister Arun Jaitley favours interest rate cut - paper  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Reuters Poll

Reuters Poll

India's growth pace to pick up as reforms draw investment   Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

Reuters India Mobile

Reuters India Mobile

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