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:

Reuters Showcase

Markets Weekahead

Markets Weekahead

Column - Caution advised in a trader’s market  Full Article 

Reuters Poll

Reuters Poll

RBI seen holding rates steady on Tuesday, minority of analysts expect cut  Full Article 

GDP Revised

GDP Revised

Economic growth revised up by almost 50 percent  Full Article 

Australian Open

Australian Open

Hingis wins Australian Open mixed doubles title with Paes   Full Article 

Houston's Daughter

Houston's Daughter

Bobbi Kristina Brown revived after found unresponsive in tub  Full Article 

India Art Fair

India Art Fair

Art fair turns India's capital into art hub.  Full Article 

Movie Review

Movie Review

"Rahasya" is an ode to Agatha Christie.  Full Article 

Review: Hawaizaada

Review: Hawaizaada

Movie Review: Hawaizaada  Full Article | Related Story 

Reuters India Mobile

Reuters India Mobile

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